2006 (12) TMI 283 - AT - Customs

Summary

Issues involved: Penalty on Clearing House Agent (CHA) for alleged failure to perform duties as per CHA Regulations, 2004 and contravention of Regulation 13(d) of CHA Regulations, 2004.

Summary:
The Appellate Tribunal CESTAT, Mumbai, considered the appeal involving a penalty of Rs. 15,000 imposed on a CHA for alleged non-performance of duties and contravention of CHA Regulations, 2004. The appellant CHA was accused of not informing Custom Officers about the non-examination of two containers, which were subsequently loaded onto a ship without let export orders by Customs. However, it was revealed that the CHA had informed the department about the non-examination of the containers and the loading of the same in the ship. The containers were later examined, and nothing objectionable was found. The Commissioner observed that instructions were given for the examination of the containers before their sailing date, and various parties were informed about this requirement. The CHA had sent a fax message to the shipping company requesting a NOC for customs examination of the containers. Despite their efforts, the containers were loaded onto the vessel before examination could take place. The Tribunal cited a precedent where a penalty on a clearing agent was set aside for similar circumstances. Consequently, the Tribunal found that the appellant CHA had taken reasonable precautions and set aside the penalty, allowing the appeal with consequential relief. The stay petition was also disposed of accordingly.