VIRENDER BANSAL Vs. CC (ICD)

JUDGEMENT

(1.) THE appellants viz. Shri Vinod Kumar Bansal, Shri Deepak Jain, Shri Joginder Singh Bhandari and Shri Davinder Kumar Sharma are in appeals before us against the impugned order wherein penalty on all the appellants have been imposed of Rs. 25 lakhs, 20 lakhs, 20 lakhs and 20 lakhs respectively under Section 112 of the Customs Act, 1962.

(2.) THE facts of the case are that Shri Vinod Kr. Bansal who used the DEPB scrips for free importation of goods which were required to be exported after manufacturing but the imported goods were diverted into local market after importation. DRI booked a case and matter was investigated, it was found that all these goods were purchased by Shri Vinod Kumar Garg and the imports made through Shri Vinod Kumar Bansal in the name of M/s Dollar Poly Pipes (India) Ltd. and M/s Shivalik Plastichem (India) Ltd. After investigation, it is revealed that the appellants were involved in the illegal imports of the goods which were diverted into domestic market without payment of duty. Therefore demand of duty against M/s Dollar Poly Pipes and M/s Shivalik Plastichem (I) Ltd. were proposed to be demanded along with interest and penalties were also proposed to be imposed. Before adjudication took place Shri Vinod Kumar Garg on behalf of the imports made through ICD, TKD went before the Settlement Commissioner and settled the issue there vide Order No. F -704/Cus/07 -SC dated 20.12.2007 and F -791/Cus/08 -SC(PB) dated 28.8.2008. Thereafter, adjudication took place with regard to imports made through Mumbai Customs and Show Cause Notices were issued to M/s Dollar Poly Pipes, its Chairman, Managing Director Shri Vinod Kumar Bansal and Shri Vijender Kumar Anjan to demand of duty along with interest and imposition of penalties under Sections 112(a) and (b) and Section 114(a) of the Customs Act, 1962. The matter was adjudicated as the imports made through ICD, TKD were settled before the Settlement Commission. Therefore no duty is demanded in the adjudication order for those imports but duty was demanded for imports made through Mumbai Customs and demand of duty of Rs. 7,82,711/ - was confirmed against M/s Dollar Poly Pipes (India) Ltd. along with interest and penalties on all the appellants along with other noticees were imposed. As no other person filed appeals before this Tribunal but appellants have filed appeal and seeking setting aside the penalty imposed on them.

(3.) FOR imports made from Mumbai port, it is the contention of the ld. Counsels that appellants before us were not the party to the Show Cause Notice. Therefore penalties on the appellants are not imposable. In these circumstances, it is prayed that the impugned order qua imposing penalty on all the appellants be set aside.