2017 (9) TMI 1209 - AT - Customs

Penalty u/s 117 on CHA license holder - unclaimed consignment - misdeclaration of goods - Held that - The appellants has failed to discharge his obligations under the Board s circular No.9/2010 dated 8.4.2010. Thus, the appellant has not discharged his duties to verify the KYC norms. For clearance of the present container, the appellant was not involved. When it is so, then levy of the penalty is looking on the higher side. By keeping in mind the doctrine of equality, justice and good conscious, penalty reduced to ₹ 15,00,000/-. Appeal allowed - decided partly in favor of appellant.

Summary

Issues:
1. Penalty imposed on CHA license holder for clearance of unclaimed consignment with discrepancies.

Analysis:
The case involved an appeal against a penalty of Rs. 30 lakh imposed on a Customs House Agent (CHA) license holder for clearing a consignment from China, which was unclaimed for over two months and contained crackers instead of toys. The appellant argued that they had no role in the clearance of the container in question as no bill of entry was filed by the importer. They also highlighted that the firm mentioned on the container, M/s. Planet Overseas, was non-existent at the given address. The appellant contended that no incorrect documents were filed deliberately, and no documents were submitted at all for the consignment in question.

The appellant's counsel further argued that the penalty under Section 117 could only be imposed if the appellant failed to follow KYC norms, but in this case, no documents were submitted at all. The appellant cited relevant case laws to support their arguments. On the other hand, the Department's counsel pointed out that the appellant had previously cleared a consignment for the same non-existent firm based on forged documents. The Department contended that the appellant should have known about the proprietor of M/s. Planet Overseas.

After hearing both sides, the Tribunal observed that the appellant had indeed cleared a consignment for M/s. Planet Overseas previously using improper documents, failing to verify KYC norms. However, in the case of the unclaimed container, the appellant had not submitted any documents for clearance. The Tribunal acknowledged that the appellant was not involved in the clearance of the present container and decided to modify the impugned order. The penalty was reduced to Rs. 15,00,000 based on the principles of equality, justice, and good conscience. Consequently, the appellant received partial relief as the appeal was partly allowed.