2008 (8) TMI 663 - AT - Customs

Summary

Issues involved: Interpretation of penalty provision u/s 117 of the Customs Act for misdeclaration in bill of entry.

The judgment by the Appellate Tribunal CESTAT, Chennai dealt with an appeal by a Customs House Agent (CHA) against a penalty imposed on them u/s 117 of the Customs Act. The show-cause notice alleged misdeclaration in a bill of entry signed by the CHA, triggering the penalty provision. The appellant argued that u/s 117 could not be invoked for misdeclaration, as it pertains to non-compliance or contravention of Act provisions. The Tribunal agreed, noting that u/s 117 is a residual penal provision applicable when there is a failure to comply or contravene Act provisions, which was not the case here. Misdeclaration in a bill of entry falls under different sections for confiscation and penalties. As such, the penalty u/s 117 was deemed inapplicable, leading to its vacation and allowing the appeal.