{"id":250979,"date":"2010-12-27T00:00:00","date_gmt":"2010-12-26T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/commissioner-vs-this-on-27-december-2010"},"modified":"2018-04-18T12:34:31","modified_gmt":"2018-04-18T07:04:31","slug":"commissioner-vs-this-on-27-december-2010","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/commissioner-vs-this-on-27-december-2010","title":{"rendered":"Commissioner vs This on 27 December, 2010"},"content":{"rendered":"<div class=\"docsource_main\">Gujarat High Court<\/div>\n<div class=\"doc_title\">Commissioner vs This on 27 December, 2010<\/div>\n<div class=\"doc_author\">Author: Harsha Devani,&amp;Nbsp;Honourable H.B.Antani,&amp;Nbsp;<\/div>\n<pre id=\"pre_1\">   Gujarat High Court Case Information System \n\n  \n  \n    \n\n \n \n    \t      \n         \n\t    \n\t\t   Print\n\t\t\t\t          \n\n  \n\n\n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t\n\n\n \n\n\n\t \n\nTAXAP\/335\/2010\t 4\/ 4\tORDER \n \n \n\n\t\n\n \n\nIN\nTHE HIGH COURT OF GUJARAT AT AHMEDABAD\n \n\n \n\n\n \n\nTAX\nAPPEAL No. 335 of 2010\n \n\n \n \n=========================================\n\n\n \n\nCOMMISSIONER\nOF CUSTOMS - Appellant(s)\n \n\nVersus\n \n\nM\/S\nVAZ FORWARDING LTD. &amp; 2 - Opponent(s)\n \n\n========================================= \nAppearance\n: \nMS AMEE\nYAJNIK for\nAppellant(s) : 1, \nNone for Opponent(s) : 1 -\n3. \n=========================================\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\nCORAM\n\t\t\t: \n\t\t\t\n\t\t\n\t\t \n\t\t\t \n\nHONOURABLE\n\t\t\tMS. JUSTICE HARSHA DEVANI\n\t\t\n\t\n\t \n\t\t \n\t\t \n\t\t\t \n\n                              and\n\t\t\n\t\n\t \n\t\t \n\t\t \n\t\t\t \n\nHONOURABLE\n\t\t\tMR. JUSTICE H.B.ANTANI\n\t\t\n\t\n\n \n\n \n \n\n\n \n\nDate\n: 22\/12\/2010 \n\n \n\n \nORAL\nORDER<\/pre>\n<p id=\"p_1\">                                           (Per :\n<\/p>\n<p id=\"p_1\">HONOURABLE MS. JUSTICE HARSHA DEVANI)<\/p>\n<p id=\"p_2\">1.\t\tThis<br \/>\nappeal is preferred against a consolidated order made by the Customs,<br \/>\nExcise and Service Tax Appellate Tribunal (the Tribunal) in an order<br \/>\npassed in three appeals being Appeal No.C\/187-189\/2009. Since a<br \/>\ncommon appeal has been filed in relation to all the three parties,<br \/>\nthis appeal is treated as an appeal preferred against respondent No.1\n<\/p>\n<p id=\"p_3\">&#8211; M\/s. Vaz Forwarding Limited.\n<\/p>\n<p id=\"p_4\">2.\t\tThe<br \/>\nCommissioner of Customs, Kandla in this appeal under <a href=\"\/doc\/201656\/\" id=\"a_1\">section 130<\/a> of<br \/>\nthe Customs Act, 1962 has challenged order dated 27th<br \/>\nJuly, 2009 made by the Customs, Excise and Service Tax Appellate<br \/>\nTribunal (the Tribunal) proposing the following two questions:-\n<\/p>\n<p id=\"p_5\">&#8220;Whether<br \/>\n\tin the facts and circumstances of the present case, the Tribunal was<br \/>\n\tjustified in holding that confiscation of goods under <a href=\"\/doc\/1384041\/\" id=\"a_1\">Section 111<\/a>[m]<br \/>\n\tand imposition of penalty under <a href=\"\/doc\/398879\/\" id=\"a_2\">Section 112<\/a>[a] of the <a href=\"\/doc\/1059693\/\" id=\"a_3\">Customs Act<\/a>,<br \/>\n\t1962 upon the respondent CHAs was neither justified nor warranted<br \/>\n\tdespite there being undisputed in clearing the goods against<br \/>\n\tbogus\/fictitious Advance Licenses and violation of the provisions of<br \/>\n\tthe <a href=\"\/doc\/1059693\/\" id=\"a_4\">Customs Act<\/a>, 1962?&#8221;\n<\/p>\n<p id=\"p_6\">&#8220;Whether<br \/>\n\tmens rea is essential for imposition of penalty under <a href=\"\/doc\/423482\/\" id=\"a_5\">section 112(a)<\/a><br \/>\n\tof the Customs Act, 1962 in the facts and circumstances where goods<br \/>\n\tare undisputedly rendered liable for confiscation under the<br \/>\n\tprovisions of <a href=\"\/doc\/1384041\/\" id=\"a_6\">section 111<\/a> of the Customs Act, 1962 and whether in<br \/>\n\tthe facts and circumstances of the present case, the Tribunal was<br \/>\n\tjustified in allowing the party&#8217;s appeal?&#8221;\n<\/p>\n<p id=\"p_7\">3.\t\tThe<br \/>\nfacts of the case stated briefly are that vide order dated 27th<br \/>\nFebruary, 2009, the Commissioner of Customs, Kandla imposed penalty<br \/>\nof Rs.2 lakhs on the respondent, a Customs House Agent under <a href=\"\/doc\/423482\/\" id=\"a_7\">section<br \/>\n112(a)<\/a> of the Act. Being aggrieved, the respondent preferred appeal<br \/>\nbefore the Tribunal who set aside the penalty.\n<\/p>\n<p id=\"p_8\">4.\t\tMs.\n<\/p>\n<p id=\"p_9\">Amee Yajnik, learned Senior Standing Counsel appearing on behalf of<br \/>\nthe appellant has assailed the impugned order by placing reliance<br \/>\nupon the reasoning adopted by the adjudicating authority.\n<\/p>\n<p id=\"p_10\">5.\t\tAs<br \/>\ncan be seen from the impugned order of the Tribunal, the Tribunal<br \/>\nafter appreciating the evidence on record has recorded the following<br \/>\nfindings:-\n<\/p>\n<p id=\"p_11\">&#8220;4.\tAs<br \/>\nis seen from the above, there is no direct evidence on record to show<br \/>\nthat the said appellants were aware of the fact of the advance<br \/>\nlicences being bogus and forged. There may be some contravention as<br \/>\nregards following procedure envisaged in the Customs House Licensing<br \/>\nRules, but there is virtually no evidence to show any knowledge on<br \/>\nthe part of the appellant about the forged advance licences. Even the<br \/>\nofficers cleared the goods against said licences and it is only<br \/>\nsubsequently on investigation that these licences were found to be<br \/>\nforged and bogus. Under these circumstances, I find no justifiable<br \/>\nreason to impose the penalties imposed upon the appellants. The same<br \/>\nare, accordingly, set aside and appeals allowed with consequential<br \/>\nrelief to them.&#8221;\n<\/p>\n<p id=\"p_12\">6.\t\tThus,<br \/>\nit is apparent that the Tribunal after appreciating the evidence on<br \/>\nrecord has found that there was no direct evidence on record to<br \/>\nindicate that the respondent was aware of the fact that the advance<br \/>\nlicences were bogus and forged. The Tribunal has also found as a<br \/>\nmatter of fact that though there was some contravention on the part<br \/>\nof the assessee in following the procedure envisaged under the<br \/>\nCustoms House Licensing Rules, there was no evidence on record to<br \/>\nshow any knowledge on the part of the respondent that the advance<br \/>\nlicences in question were forged. It is in the light of the aforesaid<br \/>\nfindings recorded by the Tribunal that the Tribunal has held that<br \/>\nthere was no justifiable reason to impose the penalties on the<br \/>\nrespondent.\n<\/p>\n<p id=\"p_13\">7.\t\tOn<br \/>\nthe findings of fact recorded by the Tribunal, it is not possible to<br \/>\nstate that the conclusion arrived at by the Tribunal is in any manner<br \/>\nunreasonable so as to warrant interference. The impugned order being<br \/>\nbased upon findings of fact, therefore, does not give rise to any<br \/>\nquestion of law much less, a substantial question of law.\n<\/p>\n<p id=\"p_14\">8.\t\tThe<br \/>\nappeal is, accordingly, dismissed.\n<\/p>\n<p id=\"p_15\">\t\t\t\t\t\t\t(<br \/>\nHarsha Devani, J. )<\/p>\n<p>\t\t\t\t\t\t\t(<br \/>\nH.B. Antani, J. )<\/p>\n<p>hki<\/p>\n<p>\t\t   \u00a0\u00a0\u00a0<\/p>\n<p>\t\t   Top<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gujarat High Court Commissioner vs This on 27 December, 2010 Author: Harsha Devani,&amp;Nbsp;Honourable H.B.Antani,&amp;Nbsp; Gujarat High Court Case Information System Print TAXAP\/335\/2010 4\/ 4 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD TAX APPEAL No. 335 of 2010 ========================================= COMMISSIONER OF CUSTOMS &#8211; Appellant(s) Versus M\/S VAZ FORWARDING LTD. &amp; 2 &#8211; Opponent(s) ========================================= [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[16,8],"tags":[],"class_list":["post-250979","post","type-post","status-publish","format-standard","hentry","category-gujarat-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Commissioner vs This on 27 December, 2010 - Free Judgements of Supreme Court &amp; 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