2000 (8) TMI 156 - AT - Customs

Summary

Issues involved: Imposition of penalty on a Customs House Agent for alleged abetment in the sale of imported goods, based on discrepancies in the destination details of the goods and the involvement of a third party buyer.

Summary:
1. The appellant, a Customs House Agent, faced a penalty for allegedly abetting the sale of imported goods due to discrepancies in destination details. The Collector imposed a penalty under Section 112 of the Act based on the issuance of duplicate challans showing different destinations for the goods.

2. The Collector's reason for penalty was the issuance of duplicate challans by the appellant, indicating different destinations for the goods. The appellant argued that the dispatch was in line with normal practices, with one set showing the importer's address in Indore and another set for Daman, as per the importer's instructions. The Collector found no satisfactory explanation for this conduct.

3. The appellant contended that there was no duplicate challan and that they were unaware of any contravention by the importer. The proceedings against the buyer, M/s. Kantilal Manilal, were dropped as they believed the export obligations were fulfilled. The penalty on the appellant was deemed unjustified.

4. The penalty on the appellant was found unsustainable as the mere discrepancy in destination details did not prove abetment. Knowledge of the contravention is essential for penalty under Section 112, which was not demonstrated in this case.

5. The departmental representative argued that the appellant acted on the buyer's instructions, not the importer's. Even though the appellant had a relationship with the buyer, the Collector exempted the buyer from wrongdoing. As the buyer was considered bona fide, the appellant, acting on their instructions, was not liable for penalty.

6. The order was made under the assumption of an illegal sale to the buyer, pending the appeal of M/s. Bombay Pharma Products. The appeal was allowed, and the penalty order was set aside based on the lack of evidence of abetment by the appellant.