Custom, Excise & Service Tax Tribunal
Trade Wings Ltd vs Commissioner Of Customs, Mumbai on 22 October, 2008
IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL
WEST ZONAL BENCH AT MUMBAI
COURT NO.I
APPEAL NO.C/1107/2001-Mum
(Arising out of Order-in- Original No.COMMR/CS/54/2001 dtd. 29.8.2001 passed by the Commissioner of Customs, Mumbai )
For approval and signature:
Honble Jyoti Balasundaram, Vice President
And
Honble A.K.Srivastava, Member(Technical)
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1. Whether Press Reporters may be allowed to see : No
the Order for publication as per Rule 27 of the
CESTAT (Procedure) Rules, 1982?
2. Whether it should be released under Rule 27 of the :
CESTAT (Procedure) Rules, 1982 for publication
in any authoritative report or not?
3. Whether Their Lordships wish to see the fair copy : seen
of the Order?
4. Whether Order is to be circulated to the Departmental : Yes
authorities?
============================================================= Trade Wings Ltd.
:
Appellant VS Commissioner of Customs, Mumbai Respondent Appearance Shri Ashok Singh, Advocate for Appellant Shri S.S.Katiyar, Authorized Representative (DR) CORAM:
Ms. Jyoti Balasundaram, Vice President And Mr.A.K. Srivastava, Member(Technical) Date of decision : 22/10/08 ORDER NO.
Per : Jyoti Balasundaram A penalty of Rs. 1,50,000/- was imposed on the appellants herein who are a Full Fledged Money Changer, on the ground that they indirectly abetted one Shri Ravindranath Bollineni, Director of M/s. Travel Club, an other FFMC in acquiring and attempting to illegally export foreign exchange amounting to US $ 72000 equivalent to Indian Rs.26,34,484/-, in the form of Travelers Cheques.
2. We have heard both sides. We find that Travel Club had frequent commercial transactions with the appellants who issued foreign exchange to several passengers travelling abroad at the instance of Travel Club. Smt.Laxmi Reddy, Front Office Executive of the appellants released the Traveller Cheques to five passengers going abroad at the instance of Travel Club and sent the same through her attendant Shri Rajesh to the office of Travel Club wherein they were received by Srinivas of Travel Club. The Traveller cheques were found in the possession of Shri Ravindranath who was intercepted when he was to board the Air India flight from Mumbai to Hong Kong. As regards the appellants, there is no evidence to show that they were aware that the foreign exchange released by them would form part of an attempt of unauthorized export. The Commissioner has held that if the appellants had functioned with due care and diligence, the issue of Traveller Cheques without observing the RBI guidelines would not have taken place and therefore, Smt. Laxmi Reddy and M/s. Trade Wings have indirectly abetted in the acquisition and attempt to illegally export the foreign exchange by Shri Ravindranath. However, lack of care and diligence by the appellants is not sufficient to pin them with the charge of abetment of the attempt of illegal export of Traveller cheques. Therefore, the penalty imposed upon the appellants is not sustainable and is accordingly set aside.
3. In the result, we set aside the impugned order in so far as it relates to the present appellants and allow the appeal.
A.K.Srivastava Member(Technical) Ms. Jyoti Balasundaram Vice President pv 2