DEVKUMAR KAPTA Vs. CC, KANDLA

JUDGEMENT

(1.) THIS appeal has been listed for hearing in view of order dated 10/7/2012 passed by the Gujarat High Court in the Tax Appeal No. 624 of 2010 filed by Commissioner of Customs against Shri Devkumar Kapta with respect to order No. A/1923 -1927/ WZB/AHD/2009 passed by this Bench in Appeal No.C/1335 to 1337 and C/868 and 869 of 2005. Appeal filed by Shri Dev Kumar Kapta before CESTAT was numbered as E/1337/2005 -DB.

(2.) THE order was passed by the High Court on the following question of law:

(3.) TAX Appeal No. 624/2010 was filed by the Revenue in the High Court against a common order dt. 25/8/2009 passed by CESTAT, Ahmedabad where Shri Dev Kumar Kapta was one of the appellants. A penalty of Rs. 25 lakh was imposed upon the present appellant by the Adjudicating authority under OIO No. KDL/COMMR/41/2005 dt. 31.3.2005. Appellant was attending to the day -to -day clearance work of the CHA and was authorised by a Power of Attorney for clearance of goods of one Shri Nopaji Lakhamji Charitable Trust, Mumbai and has signed the Bills of Entry and other documents of the Trust in such capacity. Imported goods were cleared by the importer by availing the benefit of Notification No. 7/2001 -Cus dt. 27/1/2001, as amended, which exempts the imported goods from Customs Duty when intended for donation for the relief and rehabilitation of people affected by the earth quake in the state of Gujarat. An intelligence was gathered by the Directorate of Revenue Intelligence that importers M/s Nopaji Lakhanmaji Charitable Trust, Mumbai, and M/s Development Trust, Bhuj were involved in misusing the benefit available under Notification No. 7/2001 -cus by diverting the imported goods for other purpose to places outside Gujarat. A vehicle transporting the imported old and used woollen and synthetic readymade garments was seized by DRI on Delhi -Jaipur Highway. After detailed investigation a show cause notice dt. 26/3/2002 was issued, inter -alia, to the appellant. Appellant did not file reply to the show cause notice and also did not offered the personal hearing but seem to have submitted written submission later that he was not involved in the case. Adjudicating authority, therefore, imposed a penalty of Rs. 25 lakhs upon the appellant.