2009 (7) TMI 1117 - AT - Customs

Summary

Issues involved: Misdeclaration of country of origin, imposition of penalty under Section 112(a) of the Customs Act, 1962.

Misdeclaration of Country of Origin:
- A Bill of Entry was filed for clearance of dry batteries with misdeclared country of origin.
- DRI officers suspected misdeclaration from Indonesia to China.
- Investigations revealed misdeclaration of country of origin, manipulated value, and misclassified batteries.
- Various individuals involved had knowledge of the misdeclaration.

Imposition of Penalty under Section 112(a) of the Customs Act, 1962:
- Show cause notice issued to parties including the current appellant.
- Appellant imposed with a penalty of Rs. 50,000 under Section 112(a).
- Appellant contended lack of awareness and duty fulfillment as a Customs House Agent (CHA).
- Ld. Commissioner (Appeals) upheld the penalty.
- Appellant argued against aiding or abetting the offense.

In the case of misdeclaration of the country of origin, investigations revealed discrepancies in the Bill of Entry filed for clearance of dry batteries, leading to suspicions of misdeclaration from Indonesia to China. Various individuals involved were found to have knowledge of the misdeclaration, manipulation of value, and misclassification of the batteries.

Regarding the imposition of penalty under Section 112(a) of the Customs Act, 1962, the appellant, a Customs House Agent (CHA), contested the penalty on grounds of lack of awareness and completion of duties post-assessment. The appellant argued against aiding or abetting the offense, citing previous decisions and lack of direct evidence implicating their involvement in the fraud. The Tribunal found the imposition of penalty unsustainable due to insufficient evidence directly linking the appellant to the offense, leading to the appeal being allowed with consequential relief.