2022 (3) TMI 514 - AT - Customs

Levy of penalty on Customs Broker under Section 132 read with Section 117 of the Customs Act, 1962 - Alleged contravention of Section 50(3)(a) of Customs Act - HELD THAT - From Section 50(3)(a) of the Customs Act, 1962, it is seen that the same applies to an exporter who presents a shipping bill or bill of export under this Section and hence, a Customs House Agent or a Customs Broker cannot be fastened with the penalty if the Revenue finds any wrong quoting, etc., in the presented shipping bill. The Customs Broker, who is the appellant before this forum, cannot be penalized for the alleged contravention - Appeal allowed - decided in favor of appellant.

Summary

Issues:
Levy of penalty under Section 132 read with Section 117 of the Customs Act, 1962 for contravention of Section 50(3)(a) - Applicability of penalty on Customs Broker

Analysis:
The appeals were filed against the common impugned Order-in-Appeal passed by the Commissioner of Customs, Chennai, regarding the levy of penalty under Section 132 read with Section 117 of the Customs Act, 1962, for an alleged contravention of Section 50(3)(a) ibid. The Revenue alleged that the appellant, a Customs Broker, had furnished wrong Rotation numbers for shipping bills at the time of registration for Customs examination. Show Cause Notices were issued proposing to levy penalty for contravention of Section 50(3)(a) ibid. The Adjudicating Authority confirmed the proposals, which were upheld by the First Appellate Authority, leading to the present appeals before the forum.

The crux of the matter revolved around Section 50(3)(a) of the Customs Act, 1962, which mandates the exporter to ensure the accuracy and completeness of information in the shipping bill. The question arose whether a Customs Broker could be penalized for contravention under this section. The Tribunal noted that the provision specifically applies to an exporter presenting a shipping bill, not to a Customs House Agent or Customs Broker. Therefore, it was held that a Customs Broker cannot be penalized for any inaccuracies in the shipping bill presented.

In light of the above analysis, the Tribunal set aside the impugned order and allowed the appeals filed by the appellant, a Customs Broker. The judgment clarified the distinction between the responsibilities of an exporter and a Customs Broker concerning the accuracy of information in shipping bills. The decision emphasized the limited scope of liability of a Customs Broker in such situations, highlighting the specific provisions of the Customs Act relevant to the case. The judgment provided clarity on the applicability of penalties under the Customs Act, ensuring a fair interpretation of the law in cases involving Customs Brokers and their obligations.