2016 (2) TMI 99 - AT - Customs

Levy of penalty on CHA - non following or contravening the provisions of law - Held that - the adjudicating authority has only directed reclassification of the goods imported under the description of powder of natural diamonds and accepted the declared value, which is the transaction value, and assessed the same on the same value. - the adjudicating authority has not held the goods are liable for confiscation for mis-declaration of the description. - penalty imposed under Section 117 of the Customs Act, 1962 is not sustainable. - Decided in favor of appellant.

Summary

Issues:
1. Penalty imposed on a Customs House Agent (CHA) under Section 117 of the Customs Act, 1962 for misdeclaration of imported products.

Analysis:
The appeal was filed against an Order-in-Original passed by the Commissioner of Customs, Airport, Mumbai, imposing a penalty on a CHA for misdeclaration of imported products. Despite the appellant not appearing despite multiple notices, the appeal was taken up for disposal. The learned departmental representative argued that the misdeclaration led to a contravention of provisions of CHALR, 2004, and justified the penalty under Section 117 of the Customs Act, 1962.

Upon reviewing the impugned order, it was found that the adjudicating authority had only directed the reclassification of the imported goods under the correct description of 'powder of natural diamonds' without holding them liable for confiscation due to misdeclaration. As a result, the penalty imposed under Section 117 of the Customs Act, 1962 was deemed unsustainable. Consequently, the impugned order was set aside, and the appeal was allowed with any consequential relief. The judgment emphasized the importance of proper findings by the adjudicating authority to support penalties imposed under the Customs Act, 1962.