CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL CHENNAI REGIONAL BENCH – COURT No. III Customs Appeal Nos. 41376 and 41377 of 2014 with Customs Miscellaneous Application No. 40118 of 2025 and Customs Miscellaneous Application Nos. 40635 and 40636 of 2014 (Arising out of Order-in-Original No. 24497/2014 dated 27.03.2014 passed by Commissioner of Customs, No. 60, Custom House, Rajaji Salai, Chennai – 600 001)

And (Arising out of Order-in-Original No. 24494/2014 dated 26.03.2014 passed by Commissioner of Customs, No. 60, Custom House, Rajaji Salai, Chennai – 600 001)

Mr. Dipal J. Shah ...Appellant No. A-47, Maher Park, Opp. Vanita Vishram Ground, Athwagate, Surat, Gujarat – 395 001.

Versus Commissioner of Customs ...Respondent Chennai II Commissionerate, No. 60, Custom House, Rajaji Salai, Chennai – 600 001.

APPEARANCE:

For the Assessee : Mr. S. Suriyanarayanan Iyer, Advocate For the Revenue : Mr. Sanjay Kakkar, Authorised Representative CORAM:

HON’BLE MR. P. DINESHA, MEMBER (JUDICIAL)

HON’BLE MR. VASA SESHAGIRI RAO, MEMBER (TECHNICAL)

FINAL ORDER Nos. 40258-40259 / 2026 DATE OF HEARING : 09.10.2025 DATE OF DECISION : 19.02.2026 Per Mr. VASA SESHAGIRI RAO These are two Customs Appeals No. 41376 of

2014 and 41377 of 2014 filed by Dipal J Shah (hereinafter referred to as the Appellant) to assail the Orders-in-Original No. 24497/2014 dated 27.03.2014 and 24494/2014 dated

26.03.2014 (impugned orders) passed by Commissioner of Customs (Seaport-Export) (hereinafter referred as the AA)

2. The Appellant Dipal J Shah is a Partner of M/s. Rana & Shah Associates, Chartered Accountants, Surat. Appellant had issued certificates certifying consumption of raw material, production in respect of installed machinery which were submitted to DGFT for obtaining Advance Authorisations by M/s. Minerva Tex Fab, Surat and M/s. N.S.Textiles, Surat. The goods imported by both of whom against the Advance Authorisations under actual user condition were found to be liable to confiscation under Section 111(d) and 111(o) of Customs Act, 1962 on account of diverting the goods imported to the local market of Bangalore and consequently, penalties of Rs. 3,00,000/- and Rs. 2,00,000/- were imposed on the Appellant under Section 112(a) of the Customs Act, 1962 vide Orders in Original No. 24494/2014 dated 26.03.2014 and 24497/2014 dated

27.03.2014 respectively.

3. The appellant Dipal J Shah has preferred the present appeals assailing the impugned orders.

4.1 The Ld. Advocate Mr. S. Suriyanarayanan Iyer appeared and argued for the Appellant Dipal J Shah and submitted that in the instant case, the Appellant had issued one certificate to M/s. Minerva Tex Fab situated at 79, Jay Narayan Industrial Estate, Anjana Farm, Surat on 14.05.2009 and one certificate to M/s. N.S. Textiles situated at 78, Jay Estate, Pipodra, Surat on 14.05.2009 for bank loan purpose. The certificates were issued after verifying documents such as PAN No., SSI registration [Part II] showing factory premises situated at the said address (which is equally known as government proof in banking and various government departments) and books of accounts of machineries installed in factory premises along with other ledger documents. The above mentioned certificates containing all required details were prepared and typed in the office of Appellant’s friend Shri Hiral K. Patwa, who is an advocate and tax consultant of Shri Vishal Agarawal. The Appellant had compared the details of installed capacity and production capacity recorded in typed out certificates given to Appellant along with above mentioned documentary proof and then after simple arithmetical calculation, the Appellant found the details noted in certificates to be normal and correct and did not find any over production capacity in the said typed certificates. Shri Hiral K. Patwa, Advocate who was a close friend of Appellant since his college days recommended to sign the said certificates as the said certificates were required for bank loan purpose as per th