Order date – 08 December 2022

Facts –

• The Appellant, Mohammed Irfan Abdul K. Munshi, Director of M/s Damasy Retail Jewellery Pvt. Ltd, who had imported 07 consignments of studded gold jewellery from Thailand and cleared the same through Precious Cargo Customs Clearance Centre (PCCCC), Mumbai by availing the duty exemption benefit of the Notification No.85/2004-Cus.Dated 31.08.2004.
• A show cause notice was issued to the Company and its four (4) Directors including the Appellant on the ground that the consignment had been cleared only on payment of 1% Special Additional Duty (SAD) of Customs. Accordingly penalty was imposed on the appellant.

Issue –

• Whether penalty imposed on the appellant is in order?

Order –

• The Tribunal finds that penalty has been imposed on the appellant herein under Sections 112(a) & (b) and 114AA Customs Act without there being any finding of any mens rea on his part. The penalty has been imposed only on the basis that he was one of the Directors of M/s. Damasy Retail Jewellery Pvt. Ltd. at the relevant point of time. 
• The Tribunal gone through the resignation tendered by the appellant on 28.11.2008 from the position of country head in which it has been specifically mentioned that he would not take any decisions after 30.11.2008 but still the Adjudicating Authority has imposed penalty on the appellant on the basis that he was the head of India operations of M/s. Damasy Retail Jewellery Pvt. Ltd.
• Perusal of the show cause notice suggest that suppression, mis-statement etc. everything has been attributed to M/s. Damasy Retail Jewellery Pvt. Ltd. but in the said show cause notice there is no whisper about any suppression or misstatement or abatement on the part of the appellant. 
• It is settled principle that the order needs to be passed within a reasonable period after the conclusion of hearing and the circular dated 05.08.2003 issued by Ministry of Finance, Deptt. of Revenue, Central Board of Excise & Customs, as placed on record by the learned counsel, specifically laid down the time period to a maximum of one month for issuance of order from the date of conclusion of hearing.
• Hence the appeal is allowed.