C/10188/2018 — Shri Haresh Gadhiya vs Ahmedabad

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Customs, Excise & Service Tax Appellate Tribunal West Zonal Bench At Ahmedabad

REGIONAL BENCH- COURT NO. 02

Customs Appeal No. 10188 of 2018

[Arising Out Of OIO-AHM-CUSTM-000-15-16-17 Dated- 07/03/2017 passed by Commissioner of Central Excise, Customs and Service Tax-AHMEDABAD)

Shri Haresh Gadhiya …..Appellant Manager 18, Dharma Jivan Row House Near Bridge,
Mota Varachha, Plot No. A/1-2, Block No.57,
Pipodara, Industrial Estate, Pipodara, Taluka - Mangrol, SURAT, GUJARAT VERSUS

C.C.-Ahmedabad …..Respondent Custom House,Near All India Radio Navrangpura, Ahmedabad, Gujarat

APPEARANCE: Shri. P. P Jadeja, Consultant for the Appellant
Ms. Sunita Menon, Superintendent (AR) for the Respondent

CORAM: HON'BLE MR. SOMESH ARORA, MEMBER ( JUDICIAL )

Final Order No. 10131/2026__

                                                          DATE OF HEARING:23.02.2026 
                                                    DATE OF DECISION:23.02.2026 

SOMESH ARORA

In this case, the allegation of illegal importation has been raised against the main accused M/s. Rudrani Impex Pvt Ltd. Against the present appellant a penalty of Rs. 1,00,000/- under Section 112(a) and Rs.

se, the allegation of illegal importation has been raised against the main accused M/s. Rudrani Impex Pvt Ltd. Against the present appellant a penalty of Rs. 1,00,000/- under Section 112(a) and Rs. 20,000/- under Section 114AA of Customs Act, 1962 has been imposed for diversion of imported computerized Embroidery Machines against dummy IEC and EPCG Licences Holders, On payment of zero duty and duty of 3% concessional on customs duty. The present appellant, Shri. Harish Gadhiya was employee of the CHA at the relevant time and worked for two months and dealt with 12 Bills of Entry out of a total number of more than 5,000

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Bills of Entry. He has been subjected to penalty for his alleged knowledge that the diversion was taking place to dummy units. The Advocate also submits that in the instant case no penalty has been imposed on CHA firm as well as the G-Card holder who has signed the documents.
3. Penalty in view of knowledge is therefore sustainable. The same is being reduced however, with consent of both sides, the penalty imposed under Section 112(a) of 1,00,000/- is being reduced to Rs. 50,000/- and of Rs. 20,000/- under Section 114AA is being reduced to Rs. 10,000/- 4. Appeal partly allowed.

(Dictated & Pronounced in the open court)

(SOMESH ARORA) MEMBER ( JUDICIAL )

Prachi