Penalty under Section 112 of the Customs Act, 1962 cannot be imposed on an individual without establishing their specific role or involvement in the alleged irregularity, and proceedings dropped based on a High Court ruling on the invalidity of a Section 28 notice cannot be revived.

ORDER:

[PER SHRI ASHOK JINDAL]

Both these appeals are having a common issue and therefore, they are disposed of by way of this common order.

1.1. These appeals pertain to imports pertaining to Durgapur Commissionerate.

2. The facts of the case are that M/s. Right Minerals Private Limited had filed Bills of Entry for clearance of Areca Nuts imported through Sri Lanka on the basis of Certificate of Country of Origin issued by the concerned agency located in Sri Lanka. The Revenue was of the view that the said Certificate of Country of Origin was defective and not proper and thus, the said goods were detained. On this basis, proceedings were inter alia initiated against M/s. Right Minerals Private Limited and Shri Kishan Goswami (Appellant before us in Appeal No. C/77475/2019).

3. The matter travelled up to the Hon’ble High Court at Calcutta whereafter it was held that a Show Cause Notice under Section 28 of the Customs Act, 1962 cannot be issued in this case against M/s. Right Minerals Pvt. Ltd.

4. On the basis of the above verdict of the Hon’ble High Court, such proceedings against M/s. Right Minerals Pvt. Ltd. were dropped, against which the Revenue is in appeal (Appeal No. C/75191/2019).

4.1. Further, by way of the impugned order, without specifying the role of the appellant, namely, Shri Kishan Goswami, a penalty of Rs.10,00,000/- has been imposed under Section 112(a) and (b) of the Customs Act, 1962. Against the imposition of penalty on him, Shri Kishan Goswami is in appeal before us (Appeal No. C/77475/2019).

5. Heard the parties and considered their submissions.

6. Admittedly, the Hon’ble High Court at Calcutta, in this case, has held that Show Cause Notice under Section 28 of the Customs Act, 1962 is not valid. Thus, we find that the ld. adjudicating authority has rightly dropped such proceedings initiated against M/s. Right Minerals Pvt. Ltd. under Section 28 of the Act. In that view, we do not find any merit in the appeal filed by the Revenue and therefore the same is dismissed.

7. We further take note of the fact that nowhere in the Show Cause Notice as well as the impugned order, the role or involvement of Shri Kishan Goswami (appellant in Appeal No. C/77475/2019) in obtaining defective Country of Origin Certificates from the Sri Lankan Authorities has come out. In these circumstances, we hold that no penalty can be imposed on the said appellant, Shri Kishan Goswami. Accordingly, the penalty imposed on Shri Kishan Goswami is set aside.

8. In these terms, the appeals are disposed of.

(Dictated and pronounced in the open court)