CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL NEW DELHI PRINCIPAL BENCH – COURT NO. I CUSTOMS APPEAL NO. 55789 OF 2023 [Arising out of Order-in-Appeal No. IND-EXCUS-000-APP-175-179-2023-24 dated 11.10.2023 passed by the Commissioner (Appeals) Customs, CGST, Central Excise, Indore (M.P.)]

Shri Piyush Mahendra Jain ..…Appellant No. 43, Ramchandra Nagar Extension, Aerodrum Road, Gurudev Nagar, Indore (M.P.)

VERSUS The Commissioner of Customs .....Respondent Office of the Commissioner of Customs, B-Zone, 3rd Floor, Village Pipliyakumar, Nipaniya, Indore 452001 APPEARANCE:

Shri Hardik Modh, Advocate for the Appellant Shri Nikhil Mohan Goyal, Authorized Representative for the Department CORAM:

HON’BLE MR. JUSTICE DILIP GUPTA, PRESIDENT HON’BLE MS. HEMAMBIKA R. PRIYA, MEMBER (TECHNICAL)

Date of Hearing: 12.08.2025 Date of Decision: 06.02.2026 FINAL ORDER NO. 50221/2026 JUSTICE DILIP GUPTA:

This appeal has been filed by Piyush Mahendra Jain¹ for quashing the order dated 11.10.2023 passed by the Commissioner (Appeals) Customs, CGST, Central Excise, Indore (M.P.)² to the extent it rejects the appeal filed by the appellant against the order dated 09.09.2022 passed

1. the appellant

2. the Commissioner (Appeals)

by the Additional Commissioner of Customs, Indore³ that confirms the imposition of penalty upon him under section 117 of the Customs Act, 1962⁴

2. M/s. S.R. & Co. is engaged in the trading of gold bullion. Mitual Kumar Patel is a partner in M/s. S.R. & Co. and one, Gourav Jain, a partner in M/s. Pulak Ornaments LLP, is said to have placed an order of 69kg gold bars with a condition that the payments would be made within one or two days. Ajay Kumar and Mohammad Nisar Mew took delivery of the gold bars on 20.03.2021 and while they were returning to Indore by car, the officers of Directorate Revenue Intelligence⁵ intercepted the car at Indore and seized the gold bars. Statements of Ajay Kumar, Mohammad Nisar Mew and Gourav Jain were recorded on 21.03.2021.

3. The appellant is owner of Vehicle No. MP-09-WG-1927 that was used by Ajay Kumar and Mohammad Nisar Mew. According to the appellant, he had no knowledge that the said vehicle will be used by Ajay Kumar and Mohammad Nisar Mew for the alleged purpose and, therefore, in terms of section 115 of the Customs Act penalty could not have been imposed upon him under section 117 of the Customs Act.

4. A show cause notice dated 17.09.2021 was issued to the appellant and others. The allegations against the appellant made in the show cause notice is as follows: “4. Shri Piyush Jain:

i) It appears that he supported his brother Shri Gourav Jain in brining of smuggled Gold in Indore by providing his vehicle bearing registration number MP09WG1927 which was seized from the possession of Shri Ajay Kumar and Shri Mohammad Nisar Mew.

3. the Additional Commissioner

4. the Customs Act

5. the DRI ii) He is one of the partner in M/s. Pulak Ornaments LLP and there appears no way that he did not know that the vehicle registered in his name was being used to collect the smuggled Gold from Ahmedabad on regular basis. He was well aware that the said vehicle (having secret cavity) was being used for the transport of said 6.9 kg smuggled Gold. Therefore, it appears that the vehicle is liable for confiscation under Section

115(2) of the Customs Act, 1962.

iii) He has provided his vehicle to his brother Shri Gourav Jain and supported him in the said smuggling of gold. Therefore, it appears that Shri Piyush Jain is liable for penalty under Section 117 of the Customs Act, 1962.”

5. The appellant filed a detail reply to the show cause notice and denied the allegation.

6. The Additional Commissioner by order dated 09.09.2022 confirmed the penalties imposed upon the appellants.

7. Feeling aggrieved, the appellant filed an appeal before the Commissioner (Appeals). The appeal was dismissed by order dated 11.03.2023 and the relevant portion of the order so far as it concern the appellant is reproduced below:

“30. As regards imposition of p