Order date – 27th June 2022

Facts – 

• The appellants, Jayesh Mehta, Shobha Plastics Private Limited and Harshad Vadodaria, received three SCN on 29.11.2007, 13.08.2007 and 31.1.2008, alleging that they evaded anti-dumping duty on vitrified tiles imported by misdeclaring the country of origin as Malaysia, instead of China.
• The authorities imposed the penalty Rs. 10,00,000 on Jayesh Mehta under section 112 (a) of the Act and penalty of Rs. 16,86,880/- on Harshad Vadodaria under section 112 (a) of the Act. As regards, Shobha Plastics appropriation of amounts deposited during investigation against the duty and interest liabilities fixed on Nalin Mehta.
• Aggrieved the appellants filed an appeal.

Issue – 

• Whether the penalties imposed on the appellants is justified?

Order – 

• The authorities observed that there is no reliable and corroborative evidence to establish that appellants herein had knowledge that goods imported were of Chinese Origin, in that view it cannot be said that appellants herein have committed any act or omission, which rendered the goods liable to confiscation, accordingly penalty under section 112 (a) cannot be sustained.
• Also the authorities relying on Amrit Foods V. Commissioner - 2005 (190) ELT 433 (SC) held that impugned order imposed penalty under section 112 (a) whereas show cause notice invoked section 112 (b) of the Act, appellants herein were not put to notice under section 112 (a), hence the same cannot sustain.
• Regarding Shobha Plastics the authorities observed that the Commissioner vide his common Order dated 19.01.2011 held Nalin Mehta to be the importer of the goods and fixed duty liability upon him along with interest and penalties. Department has not preferred appeal against that order dated 19.01.2011 and hence the same has attained finality.
• Therefore, the appeals were being allowed with consequential relief.