employment included that till May 2005, the responsibility of arranging finances from banks, financial institutions, supervising cash flows and working capital requirements and other commercial functions. From June 2005 till December 2005, the responsibility was restricted to only dealing with banks and financial institutions, on account of change in management of the company in June 2005. During his period of employment in the company, the Revenue initiated certain investigation regarding the manner of usage of raw materials imported under advance licences by the company. In this regard, the appellant’s statements were also recorded by the authorities in the year 2004-05. However, since no action or communication followed for nearly two decades, the appellant was under a bonafide belief that the proceedings had attained closure and did not consider himself concerned with the matter in any manner. However, in 2023 the appellant received the impugned order imposing penalty of Rs.20,00,000/- under Section 112 of the Customs Act, 1962 on the ground that as managing director of the company, he was allegedly at the helm of its affairs, which had illegally diverted duty-free materials imported under advance licences into the domestic market instead of utilizing the same in the manufacture of bulk drugs meant for export. Against the said order, the appellant is before us.
