2007 (4) TMI 166 - AT - Customs

Shipping agent changed the description in Bill of Lading to facilitate illegal import of cigarettes Held that change was done by load port agent so penalty not imposable Allegation on CHA for completion of formalities without verifying documents and destroying the same Penalty imposable

Summary

Issues: Misdeclaration of goods in import documents, liability of shipping agents, penalty imposition

In this case, the issue revolves around the misdeclaration of goods in import documents by an individual, Shri Nitesh Ashok Sadarangani, who obtained a photocopy of an Import-Export Code Allotment letter and prepared customs-related documents under his own signature. The goods imported were described as cookies and biscuits in the Bill of Entry but were later found to contain cigarettes, which were not declared. The proceedings were initiated against Shri Nitesh Ashok Sadarangani for demand of duty and penalty imposition, along with others who aided and abetted in the misdeclaration of goods. The shipping agents, M/s. Marine Container Services Pvt. Ltd. and its Assistant Manager, were charged with changing the description in the Bill of Lading to facilitate the illegal import of goods. Another individual, Shri Harish G. Dawda, was accused of assisting in the examination and completion of formalities without verifying the documents' genuineness.

In the judgment, the Tribunal considered the submissions made by the parties involved. M/s. Marine Container Services Pvt. Ltd. and Shri Achyut M. Pednekar, Assistant Manager, argued that they were not aware of the change in description of goods in the Bill of Lading and took immediate steps upon discovering the discrepancy. They claimed that the change was made by the load port agent without their knowledge to prevent pilferage. The Tribunal found that the responsibility for misdeclaration could not be fixed on them as the change was carried out by the port load agent, not by the shipping agents. While they should have noticed the variation in description between documents submitted to Customs, there was no evidence of their involvement in the incorrect declaration made by the importer. The penalties imposed on M/s. Marine Container Services Pvt. Ltd. and Shri Achyut M. Pednekar were set aside.

Regarding Shri Harish G. Dawda, who was accused of assisting Shri Nitesh Ashok Sadarangani without verifying the documents, the Tribunal noted that the allegations were supported by Shri Nitesh Ashok Sadarangani's statement. Despite not being cross-examined, the charges against Shri Harish G. Dawda were upheld. However, considering the facts of the case, the penalty imposed on him was reduced from Rs. 25,000 to Rs. 10,000. The judgment disposed of the appeals accordingly, emphasizing the importance of verifying and maintaining accurate documentation in import processes to prevent misdeclaration of goods and illegal activities.