COMMISSIONER OF CUSTOMS, SURAT Vs. IQBAL JUSUB MEMON

JUDGEMENT

(1.) THIS appeal is filed by the Revenue against the order in appeal No. KS/49 -50/SRT -II/2010 dated 26 -3 -2010.

(2.) HEARD both sides and perused the record.

(3.) ISSUE involved in this case is regarding setting aside of penalty on the respondents by the learned Commissioner (Appeals). The respondent is an employee/authorized signatory of M/s. Spectrum Fabrics (100% EOU). Officers of the Preventive Section visited the firms premises and noticed shortages of goods which were imported to the tune of 5200 Kgs. Statement of the authorized signatory was recorded wherein he has admitted diversion of the said goods to local market without discharge of duty liability. In the statement it was also stated that they are ready to discharge the customs duty and interest thereon and it was done so. Proceedings initiated by the show cause notice were confirmed by the adjudicating authority against the firm by confirmation of demand of customs duty and confiscation of goods. Since the goods were not available for confiscation, redemption fine was imposed on the firm and equivalent amount of penalty was also imposed on the firm. Adjudicating authority also imposed penalty on the employee, respondent in this case, under the provisions of Section 112B of Customs Act, 1962. The firms matter was disposed of by the Tribunal by offering the firm the benefit of the provisions of Section 114A of the Customs Act, 1962 i.e. the firm to deposit 25% of the amount confirmed as penalty and on such deposit the penalty liability was reduced by 75% of the duty confirmed. This was decided by the Tribunal vide Final Order No. A/1235/WZB/AHD/2011 dated 27 -6 -2011. In other proceedings, the respondent filed appeal before learned Commissioner (Appeals) for setting aside penalty on the appellant on the ground that no separate penalty is imposable on the employee.