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1. Penalties imposed under Section 114 of the Customs Act on exporter and CHA for misdeclaration of weight in shipping bill. Detailed Analysis: The appeals before the Appellate Tribunal CESTAT, Chennai involved penalties imposed under Section 114 of the Customs Act on an exporter and their Customs House Agent (CHA) for an alleged misdeclaration of weight in a shipping bill. The exporter had filed a shipping bill for the export of 100% Cotton Woven Men Shirts with a declared F.O.B. value and a claim for drawback. Customs authorities raised doubts regarding the weight of the goods as per the annexure to the shipping bill, leading to a case of misdeclaration against the exporter and the CHA. The Commissioner of Customs restricted the drawback claim and imposed penalties on both parties under Section 114(iii) of the Customs Act. Upon review of the records, it was found that the net weight entered on the facing page of the shipping bill was correct, while the erroneous weight was shown in the annexure. The exporter promptly acknowledged the error and applied for an amendment to the shipping bill, which was allowed by the Assistant Commissioner of Customs. The amendment corrected the weight to the actual value, resolving the discrepancy. The argument was raised that the amendment was allowed for exchange control purposes and did not impact the penalty case. However, it was emphasized that under the Customs Act, Section 149 is the sole provision for amending shipping bills, and any amendment under this section is effective for all purposes related to the document from the filing date. Therefore, in this case, as the weight misdeclaration was rectified through a valid amendment, the exporter and the CHA were not liable for penalties under Section 114. Consequently, both penalties were set aside, and the appeals were allowed by the Tribunal. In conclusion, the judgment by the Appellate Tribunal CESTAT, Chennai clarified the legal position regarding amendments to shipping bills under the Customs Act, emphasizing that corrections made under Section 149 are valid for all purposes related to the document. The Tribunal overturned the penalties imposed on the exporter and the CHA for misdeclaration of weight, as the error was promptly rectified through a legitimate amendment, absolving both parties from liability under Section 114 of the Customs Act.
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