Illegal Export of Non-Basmati Rice: CESTAT reduces Penalty of Rs. 8 Lakhs to Rs. 4 Lakhs [Read Order]

In a case involving the illegal export of non-basmati rice, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Delhi bench has reduced the penalty of Rs. 8 lakhs imposed by the department on the exporter to Rs. 4 lakhs.

The appellant is a freight forwarder and facilitated the importer and exporters.The department, upon receiving an information that non-basmati rice was being fraudulently exported by using the IEC of M/s HSIL Limited (formerly Hindustan Sanitary Ware and Industries Limited) and by M/s GPR Export Pvt. Ltd, initiated proceedings against the appellants.

Judicial Member Mr. Anil Choudhary observed thatthese persons were aware of the violation and were intentionally and knowingly involved in the act of smuggling.

“Accordingly, this appellant alongwith Sh. Sinder Pal, Sh. Abhishek Gupta, Sh. Rakesh Kumar, Sh. Rajinder P. Kapoor and M/s Naptune Cargo Movers Pvt. Ltd., were required to show cause as to why the prohibited goods (non-basmati rice) should not be confiscated under Section 113 of the Customs Act and further penalty was proposed under Section 114 of the Customs Act on Sh. Sinder Pal and Sh. Abhishek Gupta, Sh. Rajesh Dhamir and Sh. Rakesh Kumar. Further, penalty was proposed under Section 117 on the two CHAs – M/s Naptune Cargo Movers Pvt. Ltd., and Sh. Rajinder P. Kapoor. This appellant and others have contested the show cause notice, vide order-in-original dated 20.03.2012, the non-basmati rice wasabsolutely confiscated under Section 113(h) and (i). Further, penalty under Section 114 was imposed i) on Sh. Sinder Pal Rs. 10 lakhs, ii) on Sh. Abhishek Gupta – Rs. 6 lakhs, iii) on Sh. Rakesh Dhamir (appellant Rs. 8 lakhs) iv) on Sh. Rakesh Kumar – Rs. 2 lakhs. Further, penalty of Rs. 50,000/- was imposed under Section 117 on the two CHAs – M/s Neptune Cargo Movers Pvt. Ltd., and Sh. Rajinder P. Kapoor,” the Tribunal said.

To Read the full text of the Order CLICK HERE

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