2003 (6) TMI 357 - AT - Central Excise

Summary

Issues:
- Imposition of penalty under Section 114 of the Customs Act on a Customs House Agent (CHA) for failing to discharge obligations under the CHA Regulations.

Analysis:
The judgment pertains to an appeal against the imposition of a penalty of Rs. 1 lakh on a Customs House Agent (CHA) under Section 114 of the Customs Act. The CHA had acted for an exporter in the export of brass articles, and discrepancies were found during the examination of the consignment. The Commissioner had imposed penalties on the exporter and the CHA separately. The CHA challenged the penalty, arguing that there was no charge of collusion against them and that no departmental action had been taken under the CHA Regulations. The CHA contended that the penalty under Section 114 was not appropriate and that the CHA Regulations should have been followed for any violations. The Departmental Representative (DR) argued that there was an allegation of abetment/omission against the CHA in the show cause notice. The Tribunal noted that the findings against the CHA were based on their failure to fulfill obligations under the CHA Regulations, without any evidence of departmental action under those regulations. The Tribunal found the department's actions questionable and held that the CHA had made a strong case for waiver of pre-deposit and stay of recovery under Section 129E of the Customs Act.

In conclusion, the Tribunal allowed the CHA's application, granting waiver of pre-deposit and stay of recovery regarding the penalty amount. The appeal was scheduled to be heard on a later date. The judgment highlights the importance of following proper procedures and demonstrating bona fides in imposing penalties under the Customs Act, particularly concerning the obligations of Customs House Agents under the CHA Regulations.