2005 (1) TMI 469 - AT - Customs

Summary

Issues:
1. Imposition of penalty under Section 114 of Customs Act on the CHA for misdeclaration of goods in shipping bills.

Analysis:
The appellant, a Customs House Agent (CHA), filed an appeal against the adjudication order imposing a penalty of Rs. one lakh under Section 114 of the Customs Act. The issue arose when the goods for export, handled by the CHA, were found to be misdeclared in the shipping bills. The appellant contended that there was no evidence to prove connivance with the exporter in misdeclaration. The appellant relied on a previous adjudication order related to the exporter, where it was held that shifting the blame onto the CHA was an unsuccessful attempt to hide mala fide intentions. The Revenue argued that as a CHA, the appellant was duty-bound to ensure accurate documentation and was therefore liable for penal action.

The key point of contention was whether the CHA had abetted the exporter in misdeclaring goods in the shipping bills. The adjudicating authority held that the CHA must ensure strict compliance with document preparation and presentation. However, upon examination, it was found that at the time of sealing the container with Customs seal, there was no discrepancy in the declaration made in the shipping bill. The bill was based on the exporter's declaration, duly signed by a partner of the exporter's firm. Importantly, there was no evidence suggesting connivance or abetment by the CHA in the misdeclaration. Consequently, the impugned order imposing the penalty was set aside, and the appeal was allowed.