VED PRAKASH WADHWANI Vs. COMMISSIONER OF CUSTOMS, AHMEDABAD

JUDGEMENT

(1.) The challenge in the present appeal is to imposition of personal penalty of Rs. 10 lakhs upon the appellant who is Director of M/s. Cymex Time Ltd., in terms of provisions of Section 112(a) of the Customs Act, 1962. The appeal filed by M/s. Cymex Time Ltd. against confirmation of demand stands dismissed by the Tribunal for non -compliance with the stay order.

(2.) AFTER hearing both sides, duly represented by Shri P.M. Dave, learned advocate appearing for the appellant and Shri D.S. Negi, learned SDR appearing for the Revenue and after going through the impugned order passed by the Commissioner vide which he has discussed the role played by the appellant for the alleged under -valuation of the imported goods. Tribunal, in the case of M/s. Madras Petrochem Ltd. v. CC, Chennai as reported in 2007 (218) E.L.T. 712 (Tri -Chennai), has held that imposition of penalty on company for mens rea under Section 114A does not mean that its Managing Director is also to be penalized automatically under Section 112(a) of the Customs Act. In the absence of any finding that the Managing Director personally indulging in commission or omission of rendering goods liable for confiscation, he cannot be penalized. In the present matter, we find that there is no role attributable to the appellant, reflecting upon his personal knowledge.

(3.) AS such, we set aside the penalty imposed upon him and allow the present appeal with consequential relief to him. (Dictated and pronounced in Court)