2019 (5) TMI 1476 - HC - Customs

Levy of penalty on CHA - negligence - tribunal confirmed the penalty - mis-declaration of weight and proportionate value of the Synthetic Diamond Powder - aiding/ abetting in evasion of duty by misdeclaring lesser quality in carats in five out of eight Bills of Entry - HELD THAT - Tribunal observed that, when it is so then it is a case of negligence on the part of the appellant. When there is a negligence then we find the justification of levy of the penalty - CESTAT found that, the CHA is not an expert in the carats viz-a-viz grams and levy of penalty is on higher side, therefore reduced the penalty - order of tribunal confirmed. Appeal dismissed.

Summary

Issues:
1. Exemption application
2. Delay in filing appeal
3. Appeal against CESTAT order

Exemption Application:
The court allowed the exemption subject to all just exceptions in CM Appl. No. 24278/2019.

Delay in Filing Appeal:
The delay of 206 days in filing the appeal was condoned for reasons stated in the application in CM Appl. No. 24279/2019.

Appeal Against CESTAT Order:
The appeal (CUSAA 183/2019) was against an order passed by the Customs, Excise and Service Tax Appellate Tribunal. The CESTAT declined to interfere with the order in appeal except to reduce the penalty imposed on the Appellant from ?5 lacs to ?2.5 lacs. The Appellant, a Customs House Agent, filed five Bills of entry concerning eight consignments of Synthetic Diamond Powder with mis-declaration of weight and value. A penalty was levied on the Appellant for aiding in evasion of duty. The CESTAT noted the Appellant's negligence but found the penalty on the higher side. The Court found no question of law arising and dismissed the appeal, stating that the order did not call for interference. The application was also disposed of.