LexM/S CARPENTER CLASSIC EXIM P. LTD. versus COMMNR. OF CUSTOMS (IMPORTS) AND ANR.
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
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(2009] 2 S.C.R. 359
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MIS CARPENTER CLASSIC EXIM P. LTD.
A
v.
.,
COMMNR. OF CUSTOMS (IMPORTS) AND ANR.
Civil Appeal No. 3871 of 2006
FEBRUARY 12, 2009
B
[DR. ARIJIT PASAYAT AND DR. MUKUNDAKAM
SHARMA, JJ.]
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Customs Act, 1962 :
s.114A, proviso -
Evasion of customs duty by under- c
valuation of imported goods -
Levy of penalty - Claim for
benefit of reduced penalty in terms of proviso to s. 114A - Held:
On facts, not tenable - The fact that a part of the differential
duty was paid before issuance of show cause notice was not a
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mitigating circumstance - Considering the background facts D
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it cannot be said that the quantum of penalty imposed suffered
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from any infirmity
It was alleged that the appellant-company under-
.. valued its import consignments in order to evade payment ·
of customs duty. Many incriminating documents were E
allegedly seized from the premises of the appellant. The
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statement of number of persons including 'R', the
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Managing Director of the company was recorded under
s.108 of the Customs Act, 1962. On the basis of evidence
on record, the Tribunal (CESTAT) held that there was
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under-valuation to the extent of 65% and accordingly it
levied penalty on 'R' and 'T', a Director of the appellant-
Company under s.112(a) of the Act as also on the
appellant-company under s.114A of the Act.
In appeals to this Court, benefit of reduced penalty G
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in terms of proviso to s.114A was claimed on the ground
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that even before the show cause notice was issued, to
prove its bona fides, a sum of Rs. 25 Lakhs had been paid
by the appellants.
359
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SUPREME COURT REPORTS
[2009) 2 S,C,R.
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Dismissing the appeals, the Court
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HELD:1. The relevant proviso in s.114A of the
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Customs Act, 1962 is applicable only where duty has
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been paid. In the instant case Rs.25 lakhs which is not
whole of the differential duty is claimed to have been PC!id
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B before the issuance of the show cause notice. The same
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is not a mitigating circumstance. [Para 7] [ 368-F, G]
2. CESTAT has not dealt with the question whether
the quantum of penalty levied under s.114A is reasonable
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and fair. Eventhough there is no elaborate discussion
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c regarding the quantum of penalty yet considering the
background facts it cannot be said that the quantum of
penalty imposed suffers from any infirmity. [Para 8] [ 368-
A, B]
CIVILAPPELLATE JURISDICTION: Civil Appeal No. 3871
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D of 2006
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From the Judgement and Order dated 27.12.2005 of the
Custom Excise, Service TaxAppelate T~ibunal at in F.O. No. 2239
of 05 & 2241 of 05
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WITH
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Civil Appeal No. 3872 of 2002
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S.K. Bagaria, S. Sukumaran, K. Rajeev, for the Appellant.
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Mohan Parasaran, ASG, Krishna Kumar, Shweta Garg, Anil
F
Katiyar, Ashish Gopal Garg, B. Krishna. Prasad, for the
Respondent.
The Judgement of the Court was delivered by
DR. ARIJIT PASAYAT, J.
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1. Challenge in these appeals is to the judgment of
Customs, Excise and Service Tax Appellate Tribunal, South
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Zone, Bangalore (in short the 'CESTAT'). The orders in original
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passed by the Commissioner of Customs, Bangalore and
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Commissioner of Customs, Chennai were affirmed subject to
H certain modifications.
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M/S CARPENTER CLASSIC EXIM P. LTD. V. COMMNR. 361
OF CUSTOMS (IMPORTS) AND ANR. [DR. ARIJIT PASAYAT J.J
2. Seven appeals were filed against the Order-in-Original A
No.27/2004 dated 27.7.2004 by Commissioner of Customs,
Bangalore and Order-in-Original No.2724/2004 dated
30.9.2004 passed by the Commissioner of Customs, Chennai.
The details of the orders challenged before the CESTAT and
the quantum involved are as follows :
B
Appeal No Appellant
Differential
Redemption
Penalty
Duty
Fine
C/428/04
M/s
Rs.59, 12,619/- Rs.15,00,000/- Rs.55,44,396/
Carpenter
Classic Exim
(P) Ltd.
C/429/04
Ravi
Karumbaiah,
MD,CCEPL
-
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Rs.10,00,000/-
C/433/04
Sanjeev
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Rs.1,00,000/-
Kabubur
Appeal No Appellant
Differential
Redemption
Penalty
Duty
Fine
C/436/04
Mis Carpenter Rs.36,96,201/-
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Rs.9,61,506/-
Classic Exim
(P) Ltd.
C/437/04
Ravi
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Rs.9,00,000/-
Karumbaiah,
MDCCEPL
C/13/05
Thomas
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Rs.5,00,000/-
Mathew
C/06105
Sanjeev
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Rs.7,00,000/-
Kabbur
3. Background facts as noted by the CESTAT are as
follows:
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The ORI Officers received intelligence regarding the under-
valuation of imported Excerpt shown. Read the full judgment & AI analysis in Lexace.