The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Ahmedabad Bench reduced the Penalty imposed on persons accused of smuggling Rough Diamonds into India.
The officers of DRI acting on specific information, intercepted Appellants Jorabhai and Shri Premabhai at Surat and recovered 48637.525 carats of Rough Diamonds of Zimbabwe origin valued at Rs. 10,16,68,077/- (market value). There was no duty on Import of Rough Diamonds. However, import of Rough Diamonds was restricted and its import should be accompanied by Kimberley Process Certificate.
Mr. P. P. Jadeja, Counsel appearing on behalf of Appellants argued that the Tribunal had directed to quantify penalty, on two factors namely Revaluation of seized diamonds and Re- quantify penalty considering “Role of the Appellants”. He argued that the Penalty of Rs. 17,01,313/-imposed on Appellants is not Re-quantified as directed by Hon‟ble Tribunal. Such penalty deserves to be set aside or Re- quantified for reasonable, just and fair reduction on these 2 Appellants.
On the other hand, Mr. Sanjiv Kinker, Superintendent, Authorized Representative, appearing on behalf of the Revenue reiterated findings of the adjudicating authority and has submitted that arguments by Appellants are untenable and accordingly their Appeals may be rejected. He has also filed written submission in order to object the Appeals filed by Appellants and has contended that since Tribunal’s Order has attained finality, it is not open for Appellants to argue on facts of case and against penalty.
The coram of Judicial Member Ramesh Nair held that the facts of the case in hand do not reveal any such element of mensrea or conscious knowledge qua these appellants. The active role of these Appellant, do not justify imposition of heavy penalty under Section 112(b) of Customs Act 1962.
“I feel that there is no need to impose very heavy penalty upon the appellants under Section 112(b) of Customs Act, 1962, which is reduced to amounts of Rs. 1,00,000/- upon each Appellant in order to meet the ends of justice and the remaining penalty imposed on the Appellants Shri Jorabhai and Shri Premabhai is set aside in the interest of justice, though Appellants are pleading to drop the entire penalty. The order for absolute confiscation of seized rough diamonds in question is also upheld, as ordered in O-I-O dated 25-04-2018. The impugned order is modified to the above extent. Appeals are partly allowed,” the court said.
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