COMMISSIONER OF CUSTOMS Vs. BHARATKUMAR BAKORBHAI PARMAR

JUDGEMENT

(1.) THE Commissioner of Customs, Ahmedabad has filed these three Tax Appeals under Section 130 of the Customs Act, 1962 proposing to formulate the following substantial questions of law for the determination and consideration of this Court.

(2.) IT is the case of the department that M/s. Royal Trading Agency, Bombay filed Shipping Bill No. 17/91 dated, 4th March, 1991 before the Superintendent of Customs, CFS, Adalaj for export of goods, described generally ''Indian Handcrafted Assembled Unit (L.M.V.) used '', no brand with specific description for four units (cars) as (1) 1961 built, (2) 1965 built, (3) 1962 built and swan shape children 's toy 1962 and requested for permission to take containers to their site for loading 4 cars to be exported to Felixstowe with customs examination to be undertaken at CFS, Adalaj. The price declared in the shipping bill was US $12,000. On information that the aforesaid motor vehicles were illegally exported, the investigation was carried out, to ascertain validity and permissibility of export of the above referred motor vehicles. In course of investigation, the Investigating Officer has recorded the statements of various persons under Section 108 of the Customs Act, 1962. Notices were thereafter issued, replies were also given and under these facts and circumstances the Commissioner of Customs, Gujarat, Ahmedabad in the capacity of the Adjudicating Authority, passed order in Original No. 50/COMMR/97, dated, 31st December, 1997 directing, inter alia, imposition of penalty of Rs. 7 lacs, Rs. 9 lacs and Rs. 12 lacs respectively on the Respondents of these three Tax Appeals under Section 114(i) of the Customs Act, 1965.

(3.) MR . R.J.Oza, learned Standing Counsel appearing for the department has submitted that the Tribunal has committed serious error of law in allowing the appeals of the Respondents and thereby quashed and set aside the Order of penalty imposed under Section 114(i) of the Customs Act, 1962. He has further submitted that the Respondents have acted in contravention of the statutory provisions contained in the Motor Vehicle Act. He has further submitted that the Respondents have abetted the offence committed by the principal offenders under the Custom Act and willfully made wrong entries in the record and thereby they have facilitated the principal offender to export Vintage cars. He has, therefore, submitted that the penalty was rightly imposed upon the Respondents and the Tribunal, without assigning any reason has deleted the penalty imposed on the Respondents.