M/S.Oasis Business Inc. and Others Vs. Commissioner of Customs, Coimbatore - Court Judgment

SooperKanoon Citationsooperkanoon.com/943695
CourtCustoms Excise and Service Tax Appellate Tribunal CESTAT Chennai
Decided OnOct-16-2009
Case NumberAppeal No.C/385 to 388 of 2005
Judge THE HONOURABLE MS. JYOTI BALASUNDARAM, VICE PRESIDENT
AppellantM/S.Oasis Business Inc. and Others
RespondentCommissioner of Customs, Coimbatore
Advocates:Smt. Sridevi, Adv. Shri C. Rangaraju, SDR.
Excerpt:
the export goods found declared as t-shirts etc., but actually found to be ordinary banians, have been confiscated for over-invoicing of the same with an option of redemption on payment of a fine of rs.5 lakhs and penalty of rs.5 lakhs has been imposed upon the proprietary concern m/s.oasis business inc., penalty of rs.2 lakhs on shri nirmalraj, proprietor and penalties of rs.2 lakhs each on the other two appellants who have created m/s.oasis business inc., in an attempt to export garments whose value was highly inflated. 2. i have heard both sides. the appellants do not challenge confiscation of the goods as they accept that the same were grossly over-invoiced with a view to obtain higher inadmissible drawback. the only plea raised in the appeals is that penalty both on the proprietary concern and on its proprietor is not sustainable and that penalty on the proprietary concern, s/shri r. velmurugan and s.m. manickamani may be reduced having regard to the correct value of the goods viz. rs.10 lakhs. i agree with the learned counsel for the appellants that in the eye of law proprietary concern and proprietor are one and the same and penalty on both cannot be sustained. i, therefore, set aside the penalty imposed on shri nirmalraj, proprietor of m/s.oasis business inc. penalty on the exporter i.e upon the proprietory concern, is reduced to rs.3.50 lakhs (rupees three lakhs and fifty thousand only), and the penalties on s/shri velmurugan and s.m. manickamani are reduced to rs.1 lakh each (rupees one lakh only) having regard to the totality of the facts and circumstances of the case and having regard to the value of the goods in question. 3. in the result, appeal no.c/386/2005 is allowed by setting aside the penalty and the other three appeals are allowed partly by reduction in penalty.
Judgment:

The export goods found declared as T-Shirts etc., but actually found to be ordinary banians, have been confiscated for over-invoicing of the same with an option of redemption on payment of a fine of Rs.5 lakhs and penalty of Rs.5 lakhs has been imposed upon the proprietary concern M/s.Oasis Business Inc., penalty of Rs.2 lakhs on

Shri Nirmalraj, Proprietor and penalties of Rs.2 lakhs each on the other two appellants who have created M/s.Oasis Business Inc., in an attempt to export garments whose value was highly inflated.

2. I have heard both sides. The appellants do not challenge confiscation of the goods as they accept that the same were grossly over-invoiced with a view to obtain higher inadmissible drawback. The only plea raised in the appeals is that penalty both on the proprietary concern and on its proprietor is not sustainable and that penalty on the proprietary concern, S/Shri R. Velmurugan and S.M. Manickamani may be reduced having regard to the correct value of the goods viz. Rs.10 lakhs. I agree with the learned counsel for the appellants that in the eye of law proprietary concern and proprietor are one and the same and penalty on both cannot be sustained.

I, therefore, set aside the penalty imposed on Shri Nirmalraj, Proprietor of M/s.Oasis Business Inc. Penalty on the exporter i.e upon the Proprietory concern, is reduced to Rs.3.50 lakhs (Rupees Three Lakhs and Fifty Thousand only), and the penalties on S/Shri Velmurugan and S.M. Manickamani are reduced to Rs.1 lakh each (Rupees One lakh only) having regard to the totality of the facts and circumstances of the case and having regard to the value of the goods in question.

3. In the result, Appeal No.C/386/2005 is allowed by setting aside the penalty and the other three appeals are allowed partly by reduction in penalty.