2004 (5) TMI 170 - AT - Customs

Summary

Issues involved: Appeals against penalty imposed under Section 114 and Section 117 of the Customs Act, suspension of CHA license, waiver of pre-deposit of penalty, and early disposal of appeal.

In the present case, two appeals and two miscellaneous applications were before the Appellate Tribunal CESTAT, CHENNAI. Appeal No. C/13/2004 challenged a penalty of Rs. 1,00,000/- imposed on the appellants by the Commissioner of Customs under Section 114(i) and (iii) and Section 117 of the Customs Act. Another appeal, C/73/2004, was against the Commissioner's order suspending the CHA license with immediate effect.

Regarding the penalty imposed under Section 114 and Section 117, the appellant argued that the penalty was not sustainable on facts or in law. It was contended that the goods exported were not prohibited, and the penalty under Section 114 was wrongly invoked. The appellant also challenged the penalty under Section 117, stating it was not warranted in the facts of the case.

After careful consideration of the submissions, the Tribunal found that the penalty imposed under Section 114 was illegal as the goods exported were not prohibited. Additionally, Section 117 was deemed to be wrongly invoked. Referring to a previous Final Order, the Tribunal held that no penalty could be imposed under Section 114 when the clearing agent had no knowledge of the exporter's illegal acts. As the Commissioner's order did not establish any connivance or knowledge of illegal acts by the CHA, the penalty under Section 114 was set aside. Similarly, since Section 117 was incorrectly applied, the penalizing order was overturned, and Appeal No. C/13/2004 was allowed.

In the case of Appeal No. C/73/2004, challenging the suspension of the CHA license under Regulation No. 20 of the CHA Licensing Regulations, 1984, the Tribunal found that Regulation No. 20 did not authorize such suspension. Consequently, the suspension of the license was deemed unauthorized, and the order of the Commissioner of Customs was set aside, allowing the appeal.