2018 (1) TMI 1467 - AT - Customs

Penalty on CHA, Shri Sanjay Kumar Yadav - smuggling - mis-declaration of export goods - wooden jaap malas made with the beads of the sandalwoods - Held that - It appears that Shri Sanjay Kumar Yadav, Prop, has admitted that he let his office used for packing the goods and preparing documents thereof with the active participation of Shri Pushpendra Saini of M/s. Bhavya Exports and Shri Santosh Saini, employee of Shri Taran Tyagi. In exchange of that he got remuneration as admitted by Shri Sanjay Yadav as well as Shri Santosh Saini in their respective statements - thus, it appears that Shri Sanjay Yadav was actively involved in the packing of the goods which was prepared by red sandalwood. It means that he was well aware that the items are prohibited items. It is not the duty of the CHA to pack the goods. But, in the instant case the CHA was involved in packing of the goods which are prohibited. When it is so, then we have no sympathy with him - appeal dismissed - decided against appellant.

Summary

Issues: Smuggling of prohibited goods, Involvement of Clearing and Forwarding Agent (CHA), Admissibility of appeal against penalty

In this case, the appellant, a Clearing and Forwarding Agent (CHA), was penalized for his involvement in the smuggling of prohibited sandalwood beads. The appellant had declared the goods as sheesham wood but they were found to be sandalwood beads, leading to confiscation and penalty imposition. The appellant argued his innocence, claiming lack of involvement in the smuggling and highlighting the absence of cross-examination. The Revenue, however, contended that the appellant was aware of the nature of the goods being packed. The Tribunal noted that the appellant admitted to his office being used for packing the goods and preparing related documents, receiving remuneration for his participation. The Tribunal found that the appellant was actively involved in packing the prohibited goods, indicating his awareness of the illegal nature of the items. Despite the appellant's role as a CHA, which does not typically involve packing goods, the Tribunal concluded that his active involvement in the packing of prohibited items left no room for leniency. Consequently, the Tribunal upheld the impugned order, dismissing the appeal against the penalty imposed on the appellant for his involvement in the smuggling of sandalwood beads.