S.P. BAHL Vs. COMMISSIONER OF CUSTOMS (IMPORT)

JUDGEMENT

(1.) THE appellant filed this appeal against order -in -original CAO No. 13/2012/CAC/CC/BKS, dated 19 -3 -2012 passed by the Commissioner of Customs (Adjudication), New Customs House, Mumbai, wherein the ld. Commissioner, amongst others, has imposed penalties of Rs. 11,23,560/ - under Section 114(i) and Rs. 5,61,780/ - under Section 114AA of the Customs Act, 1962 upon -the appellant. The facts of the case is that one Shri Pradeep Dhond has procured and sent a huge quantity of Norphedrine, Ethyl Amphetamine, Phenyl Propanolamine and Amphetaminil to Mexico by mis -declaring the same as Lead Acetate. During investigation the DRI officers seized the goods - 116.400 Kgs of Amphetaminil and 324.600 Kgs of Norephedrine Hydrochloride valued at Rs. 1,10,25,000/ - and 842.400 Kgs of Lead Acetate valued at Rs. 2,10,600/ - at Air Cargo Complex on 12 -6 -2008. The officers also seized goods - 222.700 kgs of Norephedrine Hydrochloride and 94.700 kgs of Ethyl Amphetamine and Phenyl Propanolamine valued at Rs. 79,35,000/ - from the transporter's godown at Jay -want Apartment, Sahar on 13 -6 -2008. Seizure was also made of goods - 65Kgs of Norephedrine Hydrochloride valued at Rs. 16,25,000/ -, 100 kgs of oxalic acid valued at Rs. 6500/ -, 225 kgs of lead acetate valued at Rs. 56,250/ - and medicines valued at Rs. 2,12,850/ - from the office premises of Mr. Pradeep Dhond on 12/13 -6 -2008. A show cause notice dated 11 -12 -2008 was issued to Shri Pradeep Dhond and Shri S.P. Bahl proposing the confiscation of the aforesaid seized goods under Section 113(d) read with Section 7 of FTDR Act read with Rules 7 & 12 of Foreign Trade (Regulations) Rules, 1993. Penalties were also proposed to be imposed upon Shri Pradeep Dhond and Shri S.P. Bahl (present appellant) under Sections 114(i) and 114AA of the Customs Act, 1962. In adjudication, the ld. Commissioner has confiscated the aforesaid goods, imposed redemption fine and imposed penalties of equal amounts on both Shri Pradeep Dhond and Shri S.P. Bahl under Section 114(i) and 114AA. Hence the Appellant Shri S.P. Bahl is before us against the imposition of penalty of Rs. 11,23,500/ - under Section 114(i) and Rs. 9,83,560/ -. The penalties were imposed towards the confiscation of the goods at three places. The appellant was made notice on the sole statement of Shri Pradeep Dhond wherein he implicated the Appellant. As per his statement Shri S.P. Bahl has supplied the lead acetate to him which was attempted to be exported by using IEC of some other firm namely KLM Exports India. Shri Pradeep Dhond stated that although he had arranged to get the material supplied by Shri S.P. Bahl collected he claimed ignorance of the place from where it was loaded on to the tempo which transported it to his (Dhond) office premises and the transporter's godown. Thus on the basis of statement of Shri Pradeep Dhond, the charge was lavelled on the Appellant and consequently penalties were imposed.

(2.) LD . Counsel for the Appellant made following submissions:

(3.) WE have carefully considered the submissions made by both the sides.