Penalties under the Customs Act cannot be imposed without clear evidence of intent to defraud or wrongdoing.

FINAL ORDER NOs.- 70009-70011/2026

DATE OF HEARING : 19.11.2025

DATE OF PRONOUNCEMENT : 12.01.2026

Customs Appeal No.70635/2025 has been preferred by M/s CONCOR CFS, Act Appellant No.1 challenging the Order-in-Original No.12/PC/NOIDA-CUS/2024-25 dated 28.03.2025, to the extent of imposition of penalties of Rs.50,000/-, Rs.2,50,000/-, Rs.2,50,000/- & Rs.50,000/- under Regulation 12(8) of the Handling of Cargo in Customs Areas Regulations, 2009 , Section 114AA , Section 117 & Section 158 (2) respectively of the Customs Act, 1962 , APPEARANCE

2. Customs Appeal No.70636/2025 has been preferred by Shri O. Sairam, Appellant No.2, to the extent of imposition of penalty of Rs.50,000/- under Section 114AA of the Act.

3. Customs Appeal No.70637/2025 has been preferred by Shri Subodh Kumar, Appellant No.3, the Assistant Manager (Commercial and Operation) of Appellant No.1, to the extent of imposition of penalty of Rs.50,000/- under Section 114AA of the Act.

4. Since the aforesaid three appeals arise out of the common Show Cause Notice, SCN CORAM: HON’BLE MR. P.K. CHOUDHARY, MEMBER (JUDICIAL) dated 31.03.2023 and common Order-in- Original No.12/PC/NOIDA-CUS/2024-25 dated 28.03.2025 hence, all the three appeals are heard together.

5. The Appellant No.1 is a public sector undertaking engaged in transportation and handling of containers and during the relevant time, the Appellant No.1 was also maintaining Container Freight Station, CFS at Inland Container Depot, ICD, Dadri U.P. The Appellant No.2 & 3 are employees of Appellant No.1 and during the relevant time were working as Assistant Manager (Commercial and Operation) of Appellant No.1.

6. Briefly stated, the facts of the case are such that on 15.11.2018 at around 10:59 Hrs., the staff of the Appellant No.1 in EXIM-Cell issued Entry Permits numbers EPC181115005 & EPC181115006, for two loaded containers bearing numbers BMOU5791210 & SEGU5336240, on the basis of letter dated 15.11.2018 of Shipping Line namely M/s Star Shipping Services (India) Ltd. and check list for Shipping Bill dated 14.11.2018 having name of exporter M/s R.D. IMPEX Pvt. Ltd. bearing stamp of customs broker namely M/s Zen Cargo logistics. The said two entry permits were generated under Entry Permit for Container, EPC on the request of shipping line for export off-loading of loaded containers. The two containers arrived at the gate of CONCOR CFS ICD Dadri on 16.11.2018 and entry was done at around 02:40 Hrs. on 16.11.2018.

7. It is the case of Appellants that one Shri Vinod Kumar Dubey of M/s Star Carrier (customs broker) approached the employees of the Appellant No.1 on 16.11.2018 representing that the two containers in question were meant for customs clearance at All Cargo Logistics CFS, ICD, Dadri and the same were mistakenly entered into CONCOR by the transporter as both CONCOR and All Cargo Logistics has the same code i.e. IN- DER6. On the representation so made, Shri Vinod Kumar Dubey requested that the two containers be moved out of CONCOR for shifting to All Cargo Logistics, CFS, ICD Dadri.

8. As per the Appellants, Shri Vinod Kumar Dubey was requested to produce permission of the Customs Authorities and was also required to pay dues of Appellant No.1 for handling/storage and additional charges for containers. On the request so made, Shri Vinod Kumar Dubey requested the employees of the Appellant No.1 to provide calculation of dues, for which purpose the employees of Appellant