Page 217 - ELT_15th May 2020_VOL 372_Part 4th

2020 ] SANTOSH KUMAR PODDAR v. COMMISSIONER OF CUSTOMS (PREV.), KOLKATA 607

by appellants - Order of confiscation under Sections 111(b) and 111(d) Cus-
toms Act, 1962 not sustainable. [para 9]
Penalty - Imposition of penalty on the Director of a Company without
making the Company a party to the proceeding not justifiable and accordingly
set aside - More so, when the confiscation of the seized goods is set aside, pe-
nalization thereof is not maintainable upon the appellants herein - Sections
112 and 114A of Customs Act, 1962. [para 10]
Appeals allowed
CASE CITED
Rasilaben H. Rathod v. Commissioner — 2008 (226) E.L.T. 641 (Tribunal) — Relied on ............... [Para 8]
REPRESENTED BY : Shri H.K. Pandey, Advocate, for the Appellant.
Shri S.K. Naskar, AR, for the Respondent.
[Order per : P.K. Choudhary, Member (J)]. - The present appeals are
filed against Order-in-Original No. 20/CUS/CC (P)/WB/2016, dated 29-8-2016.
2. The facts of the case are that on 29-6-2015, the Customs Officer ap-
prehended one Shri Amol Deshmukh near P-2, Kalakar Street, Barabazar, Kolka-
ta, at about 15.30hrs with 20 pieces of Gold Biscuits including two cut pieces with
silver beads. The gold pieces were found weighing 2331.420 grams and the silver
metal beads 08.720 grams collectively. Said Shri Amol Deshmukh was brought to
Custom House, Kolkata where the gold and silver beads was seized under Sec-
tion 110 of the Customs Act, 1962 on reasonable belief that the goods were ille-
gally imported into India through unauthorized route without any valid docu-
ments and are liable to confiscation under Sections 111(b) & 111(d) of the Cus-
toms Act, 1962. The person was arrested and produced before the Judicial Magis-
trate where he was released on bail on 30-6-2015. Shri Santosh Kumar Poddar,
Director of M/s. Anjani Gold Private Limited claimed ownership of the seized
goods on behalf of the Company and submitted that the gold and silver beads
were part of their stock-in-trade and the gold under seizure was from the lot
purchased from the State Bank of India which they had sent to Shri Ganesh
Haridas Kadam for melting thereof.
3. Based on the statement of Shri Amol Deshmukh, that he was em-
ployed with Shri Ganesh Haridas Kadam, the statement was recorded on 22-7-
2015 by the Customs Officer. In his statement Shri Ganesh Haridas Kadam, stat-
ed that he was engaged in melting and refining of gold and had received the
gold with silver beads from Shri Santosh Kumar Poddar, Director of M/s. Anjani
Gold with a bill for melting. He handed over the goods to his staff Shri Amol
Deshmukh for taking it to his melting shop and he himself went to attend some
other work and in a hurry forgot to handover the bill to Shri Amol Deshmukh.
He also produced a copy of the said gold bill to the Investigating Officer. During
enquiry with M/s. Anjani Gold Private Limited, it was found that they had pur-
chased gold through Customs Auction vide Tax Invoice No. OBK/PCD/13-
14/26, dated 26-3-2015 issued by State Bank of India, Overseas Branch, Kolkata
weighing total 19801.52 grams but the marks/inscription on two of the Twenty
pieces gold biscuits was not mentioned in the said invoice.
4. With this background, show cause notice was issued to Shri Amol
Deshmukh, Shri Ganesh Haridas Kadam and Shri Santosh Kumar Poddar under
Section 124 of the Customs Act, 1962 proposing confiscation of the seized goods
under Sections 111(b) & 111(d) of the Customs Act, 1962 and imposition of penal-
EXCISE LAW TIMES  15th May 2020  217