2006 (8) TMI 371 - AT - Customs

Summary

Issues:
1. Misdeclaration of country of origin to evade anti-dumping duty.
2. Imposition of penalty on the Indian agent of the foreign Freight Forwarder.
3. Interpretation of Section 148 of the Customs Act regarding liability of an agent.
4. Reduction of penalty based on previous appeal decision.

Analysis:
The case involved a situation where an Indian agent of a foreign Freight Forwarder was penalized for misdeclaration of the country of origin of Zinc Carbon Battery consignment to evade anti-dumping duty. The appellant's principal had issued a bill of lading showing Malaysia as the country of origin, while the goods were actually loaded from China, subject to anti-dumping duty. Customs authorities confiscated the goods and imposed a penalty of Rs. 5 lakhs on the appellant for the fraudulent misdeclaration.

Regarding the interpretation of Section 148 of the Customs Act, the appellant argued that as an agent of the Freight Forwarder, it should not be held liable under this section. However, the Tribunal disagreed, stating that the appellant's principal acted as an agent of the shipping liner by issuing the house bill of lading, which was the document entitling the importer to take delivery of the goods. Therefore, the liability fell on the appellant's principal under Section 148, as the false declaration of the country of origin in the house bill was the basis for avoiding anti-dumping duty.

Despite upholding the penalty imposition, the Tribunal considered the facts of the case and a previous decision in the importer's appeal. Consequently, the penalty on the appellant was reduced from Rs. 5 lakhs to Rs. 2 lakhs. The Tribunal confirmed the impugned order, subject to the reduced penalty amount, emphasizing the importance of accurate declaration of country of origin to prevent duty evasion.

In conclusion, the judgment highlighted the accountability of agents in customs matters, the significance of accurate documentation in international trade, and the application of legal provisions to prevent fraudulent practices like misdeclaration of country of origin to evade duties.