No Leniency since Assessee misappropriated Government Money: CESTAT [Read Order]

The CESTAT, Chandigarh bench has held that there cannot be any leniency since the assessee has misappropriated the government money.

The appellant challenged the impugned order wherein the penalties have been imposed under section 112 (a) and section 114AA of Customs Act, 1962 for alleged preparation of fake TR-6 challans showing payment of customs duty which actually was not paid by the appellant.

Before the Tribunal, the appellant submitted that the appellant was working under the guidance of Shri Varun Mahajan and is a very poor person and he has done this act on the direction of his master. Therefore, for the act of master, he cannot be penalized.

Mr. Ashok Jindal, Member (Judicial) observed that this is case of preparing fake TR-6 challans showing payment of customs duty which actually was not paid by the appellant. The appellant has admitted the guilty at the time of recording his statement.

Diving deeply into the facts of the case, the Tribunal held that “As there is corroboration in the statement of the appellant that the appellant has shared money foregone for non-payment of customs duty with Sh. Varun Mahajan, in that circumstance, the appellant isnot entitled to any leniency from this Tribunal as the appellant misappropriated the government money. In that circumstance, I do not find any infirmity in the impugned order for imposing penalties and the same is upheld.”

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