Delhi High Court
Jaspal Singh Chaudhary vs Commissioner Of Custom (I & G) on 13 July, 2018
$~12
* IN THE HIGH COURT OF DELHI AT NEW DELHI
Date of decision: 13.07.2018
+ CUSAA 152/2018
JASPAL SINGH CHAUDHARY ..... Appellant
Through: Mr. Rajesh Srivastava, Mr. Abhishek
Yadav, Mr. Saurabh Balwani and
Mr. Saurabh Yadav, Advocates.
versus
COMMISSIONER OF CUSTOM (I&G) ..... Respondent
Through: Mr. Abhishek Ghai, Adv. for
Mr. Sanjeev Narula, Sr. Standing
Counsel for Customs.
CORAM:
HON'BLE MR. JUSTICE S. RAVINDRA BHAT
HON'BLE MR. JUSTICE A. K. CHAWLA
HON'BLE MR. JUSTICE S. RAVINDRA BHAT (ORAL)
%
CM APPL. 27174/2018 (for condonation of delay)
For the reasons mentioned in the application, the delay of 67
days in re-filing the present appeal is hereby condoned.
Application stands disposed of.
CM APPL. 27175/2018 (for exemption)
2. Allowed, subject to all just exceptions.
CUSAA 152/2018
3. Issue notice.
4. Mr. Asbhishek Ghai, Advocate accepts notice.
5. The limited ground and the question of law urged in this appeal
is:-
"Whether given the concurrent findings and the
circumstances established, the imposition of a higher
penalty on the appellant was justified?"
6. The facts are virtually not in dispute; the appellant was working
for one M/s Alliance Strategies Limited as a Liaison Manager. The
said concern was issued notice for clearing goods on the basis of false
documents. This culminated in an adjudication order issued by the
Commissioner of Customs (I&G).
7. The findings recorded by the Commissioner are as follows:-
"37.7 Thus in view of above, it is clear that M/s Alliance
Strategies Limited; Shri Ashok Gupta, Chairman; Sh.
Sanjay Sachdeva, CEO; Sh. Amit Mahajan, Ex-Manager
Business Development; Sh. Jaspal Singh Chaudhary,
Manager and Ms. Anuradha Diwan of M/s Alliance
Strategies Ltd., New Delhi had entered into a conspiracy
to forge the WPC Import licences for monetary
consideration and projecting the efficiency of M/s
Alliance Strategies Ltd. in providing services to their
clients by supplying the WPC Import licences purported
to had been issued by DoT within a short span of time
compared to their competitors in the trade. The forged
WPC import licences were entirely prepared by them
through forgery and were typed by Shri Jaspal Singh
Chaudhary and Ms. Anuradha Diwan on the
behest/directions of Shri Ashok Gupta, Chairman and
Sanjay Sachdeva, CEO of M/s ASL. Shri Sanjay
Sachdeva and Shri Jaspal Singh Chaudhary in their
respective statements tendered under Section 108 of the
Customs Act, 1962 had admitted that such forged WPC
import licences were signed by Shri Jaspal Singh
Chaudhary on the behest/directions of Shri Ashok Gupta
and Shri Sanjay Sachdeva. The examination of the laptop
used by Sh. Jaspal Singh Chaudhary and Ms. Anuradha
Diwan also resulted in retrieval of documents which
contained the WPC Import licences purported to be
issued by DoT. Sh. Sanjay Sachdeva, was looking after
the day-to-day affairs of the notice no.3 and two rubber
stamps were also recovered from his cabin which were
used for forging the WPC Import licences on his
directions. The WPC Import licences were also forged on
the directions of Sh. Ashok Gupta who was Chairman of
M/s ASL. Sh. Amit Mahajan, who was looking after the
Customs clearance of the imported goods was aware of
the requirement of WPC Import licences for the import of
"Apparatus for Wireless Telegraphy" and was also
aware about the forgery made by notice no.3. Noticee
no.3 was the actual beneficiary of the above illegal
activities. M/s Alliance, S/Shri Ashok Gupta, Chairman,
Sanjay Sachdeva, CEO, Sh. Amit Mahajan (Ex-Manager
Business Development), Sh. Jaspal Singh Chaudhary and
Ms. Anuradha Diwan of M/s Alliance Strategies Ltd.,
New Delhi had committed an offence by forging the WPC
Import licences which had rendered the goods imported
by M/s HCIL and M/s HNSI under the aforesaid Bills of
Entry liable to confiscation under Section 111(d) of the
Customs Act, 1962 and they are therefore, liable for
penal action under Section 112 (a), 112 (b) and 114AA of
the Customs Act."
8. In view of these findings, the Commissioner ordered
confiscation of the goods valued over `3.13 Crores but with an option
to redeem them for `60 lacs; individual penalty orders were made
under Section 112 of the Customs Act, 1962 against M/s Hughes
Communication India Ltd.; `1.50 Crores under Section 114AA of the
Customs Act, 1962 upon M/s Alliance Strategies Ltd., New Delhi; and
a sum of `20 lacs each under the said two provisions upon Mr. Ashok
Gupta, Chairman of M/s Alliance Strategies Ltd. and of `20 lacs each
under the said two provisions upon Mr. Sanjay Sachdeva, CEO of M/s
Alliance Strategies Ltd. A penalty of `20 lacs each under Section 112
and under Section 114AA of the Customs Act, 1962 was imposed on
the appellant. On the other hand, a lower rate of penalty of `6 lacs
each under the two provisions was imposed upon two other employees
of M/s Alliance Strategies Ltd. i.e. Mr. Amit Mahajan, Ex-Manager
and on Ms.Anuradha Diwan, Assistant Manager, both of whom were
equally culpable and had worked for M/s Alliance Strategies Ltd.
9. The appellant urges that the penalties imposed in this case are
ex-facie arbitrary and unreasonable. In the absence of differentiating
the role of the three employees i.e. the appellant, Mr. Amit Mahajan
and Ms. Anuradha Diwan, he could not be singled out and imposed
with a higher penalty of Rs.40 lacs.
10. The Revenue urges that in the present case there was a
difference, inasmuch as, the appellant was responsible for the forgery
of a larger number of documents and that the findings indicate that the
appellant was involved in forgery and other two employees were
coordinating him.
11. This Court is of the opinion that the imposition of different
amounts as penalties upon the appellant on the one hand and the other
two employees on the other, in the peculiar facts of this case, does not
appear to be justified. Although the Revenue's counsel sought to
justify this difference by emphasising upon the nature of the role, what
appears from the record is that the lower authorities were carried away
by the fact that the appellant was a Manager whereas, the other two
were lesser ranked employees.
12. Having regard to the above observations and finding the penalty
imposed upon the appellant (`20 lacs each under Section 112 and
114AA of the Customs Act) is hereby reduced to `6 lacs under each
provision.
13. The appeal partly succeeds to the above extent and is
accordingly allowed.
14. The appellant shall deposit this amount within four weeks from
today.
S. RAVINDRA BHAT, J
A. K. CHAWLA, J
JULY 13, 2018
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