FAIRDEAL ENTERPRISE P. LTD. Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) HEARD both sides. By the impugned order dated February 28, 2007, the learned Commissioner held that if the duty of Rs. 6,12,144 demanded from the importer, cannot be recovered, the same should be recovered from the appellant, i.e., M/s. Fairdeal Enterprises. Being aggrieved with this order, the appeal is filed before this forum. The learned advocate appearing for the appellant has submitted that in this case, M/s. Carina Creations of Delhi -based firm had imported 100 per cent, mulberry raw silk under DEEC Scheme and the said duty -free materials, instead of being used in the manufacture of the resultant export product, were clandestinely disposed of, in the domestic market without fulfilling the stipulated export obligation, in contravention of the conditions of Customs Notification Nos. , dated March 31, 1995 and 31/1997 -Customs, dated April 1, 1997. Accordingly, a show -cause notice was issued to various noticees including the appellant proposing for confiscation of the imported goods, having the demand of customs duty forgone and for imposition of penalty. During the adjudication proceedings, the learned Commissioner dropped the proposal to impose penalty on Shri Shankar Lal Sharma, proprietor of the appellant -firm under sections 112 and 114A of the Customs Act, 1962, but sought to recover the duty payable by the importer from the appellant, M/s. Fairdeal Enterprises. It is submitted that there was no evidence of the involvement of the appellant in the post -import violation. It is further submitted that in similar cases, following the ratio of the Bench decision in the case of P.C. Chakravorty v. Commissioner of Customs, [2008] 229 ELT 675 (Trib. -Kolkata), this Tribunal, vide Order Nos. A -1358 to 1362, dated December 15, 2008 set aside the order of the lower authority imposing penalty on M/s. Fairdeal Enterprises. In view of these facts, it is stated that the duty liability cannot be fastened on the appellant, M/s. Fairdeal Enterprises.

(2.) THE learned authorised representative for the Revenue reiterated the findings of the learned Adjudicating Commissioner. He submits that according to section 147 of the Customs Act, 1962, duty can be recovered from the agent. Since in the present case, the appellant, M/s. Fairdeal Enterprises had acted as an agent in handling the documents and clearance of the goods, duty can be recovered from them.