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2017 (12) TMI 1727 - AT - CustomsPenalty on CHA - it is alleged that appellant company's CHA has declared wrong classification - HELD THAT - From the impugned order, it appears that importer Shri Raj Kumar Wadhwa is the controller of importer firm and on the basis of whatever documents he has sent, Bill of Entry was filed by CHA. Thus, in the instant case, no mala fide intention is on the part of the appellant and he filed Bill of Entry in bona fide manner. Penalty set aside - appeal allowed - decided in favor of appellant.
Issues:
Classification of imported goods under incorrect category leading to penalty imposition. Analysis: The appeal was filed against an Order-in-Appeal where a penalty of ?50,000 was levied on the appellant, a Customs Broker, for incorrectly classifying imported batteries under CTH No. 8714 20 90 instead of 8507 80 00. The appellant rectified the classification later. During the hearing, it was noted that the importer had provided the necessary information to the appellant for classification, and the Bill of Entry was filed based on these documents. The tribunal found that there was no mala fide intention on the part of the appellant, as the importer was the controller of the importing firm and the appellant acted in good faith while filing the Bill of Entry. The tribunal concluded that the appellant had classified the goods in a bona fide manner based on the information provided by the importer. As there was no evidence of any wrongful intent or deliberate misclassification, the penalty imposed was deemed unjustified. Therefore, the tribunal set aside the impugned order and deleted the penalty of ?50,000 levied on the appellant. The appeal filed by the appellant was allowed, ruling in favor of the appellant. This judgment highlights the importance of good faith actions by Customs Brokers while classifying imported goods and the significance of relying on information provided by the importer. It also emphasizes the need for a thorough review of the circumstances leading to the classification error before imposing penalties.
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