2010 (1) TMI 1080 - AT - Customs

Penalty u/s 114(i) of the CA 1962 - it was alleged that appelalnt aided and abetted smuggling of red sanders logs in the guise of mica powder by M/s. S.K. Impex - Held that - There is no evidence on record as to the knowledge on the part of the appellant of the substitution of red sanders logs for mica powder - It is not the case of the Department that the CHA was involved in the tampering. Negligence cannot result in abetment so as to warrant penal action - penalty set aside - appeal allowed - decided in favor of appellant.

Summary

The Appellate Tribunal CESTAT Chennai ruled in favor of the appellant, the authorized signatory of M/s. Sindhu Cargo Services Ltd., CHA, in a case involving penalty imposition under Section 114(i) of the Customs Act, 1962. The Tribunal found no evidence of the appellant's knowledge of the smuggling of red sanders logs in place of mica powder, and since negligence does not amount to abetment, the penalty was set aside based on previous decisions.