COMMISSIONER OF CUSTOMS Vs. DILMEET CORPORATION

JUDGEMENT

(1.) THESE cross appeals arise from a common Order -in -Appeal No. 480 & 481/2006/MCH/JT/Gr -IIA/2006, dated 6 -10 -2006 passed by the Commissioner of Customs (Appeals), Mumbai, wherein the Commissioner (Appeals) was pleased to drop the penalty of Rs. 5 lakhs imposed on ex -partner Shri Manmohan Singh Kohli and penal liability on the firm M/s. Dilmeet Corporation was reduced from Rs. 10 lakhs to Rs. 5 lakhs under Section 112(a) of the Customs Act, 1962. The appellant M/s. Dilmeet Corporation (Appeal No. C/14/2007), is in appeal against sustenance of penalty of Rs. 5 lakhs, whereas the Revenue is in appeal against reduction of penalty on the firm and dropping of penalty on the ex -partner. As common question of facts and law are involved in all the cases, the appeals are taken up together for disposal.

(2.) THE brief facts as evident from the Order -in -Original and the Order -in -Appeal and other documents on record is that M/s. Dilmeet Corporation is a trading firm and Shri Manmohan Singh Kohli was earlier partner and then proprietor of the said firm. The appellant Shri Manmohan Singh Kohli is also partner in another firm M/s. S. Atam Singh & Brothers. Both the firms are sister concern and also involved in export -import trading having common office premises at Mahesh Chamber 391, Narshi Natha Street, Masjid (W), Mumbai - 400009.

(3.) THE learned Counsel for the appellant firm vehemently argues that in the facts and circumstances borne on the records, the appellant had abandoned the goods in April, 1996 by non -objecting to the auction sale by the Mumbai Port Trust and also by directing its Bankers (August, 1996) to return the documents to the Bank of the supplier in China. It is important to take notice of the provisions of Section 23, which reads as under: -