The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi Bench deleted penalty as there was no active role for use of Import and Export (IEC) code for monetary consideration.
The appellant, Amit Nagi, is the proprietor of M/s Dev International and the other appellant Ravinder Puri is a middleman/ facilitator who facilitates the traders engaged in import /export. Amit Nagi on advice of Ravinder Puri allowed the use of his IEC code for import to be made by Rajan Arora.
It is further evident that both the appellants believed Rajan Arora in good faith that he wants to use the IEC code of M/s Dev International for import of crockery/ glasses/ disposable glasses and that both the appellants were not aware about the actual goods being imported by Rajan Arora in connivance with Ramesh Wadhera.
It is also apparent that such misuse of IEC of M/s Dev International could not have been done without the active connivance of the CHA – M/s Jai Impex. Also there has been no interrogation with the CHA for facilitating import by Rajan Arora by using the IEC code of Amit Nagi, without proper authorisation.
A Single Bench consisting of Anil Choudhary, Judicial Member observed that “I find that there is no active role played by these appellants save and except facilitating the use of IEC code of M/s Dev International by another for some monetary consideration. In this view of the matter, I allow both the appeals in part modifying the order of penalty. The penalty of Rs. 12 lakhs on Amit Nagi under Section 112(a) is reduced to Rupees fifty thousand.”
“Consolidated penalty on Ravinder Puri – Rs. 15 lakhs under Section 112(a) read with Section 114AA is reduced to Rs. 1 lakh. The penalty of Rs. 12 lakhs on M/s Dev International is set aside as penalty imposed simultaneously is not exigible on the Proprietor and Proprietorship firm.”
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