2000 (11) TMI 835 - AT - Customs

Summary

Issues:
1. Confiscation of goods and imposition of personal penalties by the Commissioner of Customs, Calcutta.
2. Imposition of personal penalties on various parties involved in the case.

Issue 1: The Commissioner of Customs, Calcutta, confiscated goods valued at approximately Rs. 1.65 crores and imposed personal penalties on several parties. The appellants were aggrieved by the penalties imposed, not the confiscation of goods. The Tribunal found that the appellants, M/s. Chaturbhuj Overseas Agency and its partners, were liaison agents assisting the Nepalese importer and the Customs Clearing Agent. The adjudicating authority imposed penalties based on the appellants' role in providing necessary documents for customs clearance. However, the Tribunal observed that there was no evidence to show that the appellants were aware of any mis-declaration regarding the goods' description and value. The Tribunal noted that providing documents to the Customs House Agent was part of the normal business duty. The Tribunal also considered an Income Tax Certificate with the importer's photograph, indicating the appellants' satisfaction with the importer's authenticity. Therefore, the Tribunal concluded that the imposition of personal penalties on M/s. Chaturbhuj Overseas Agency and its partners was unjustified.

Issue 2: The Tribunal also addressed the imposition of a personal penalty of Rs. 10,000 on M/s. Nepa Agency & Co. (P) Ltd., the Customs Clearing Agent. The Tribunal found that the Clearing Agent had acted in the ordinary course of business without representing a fictitious firm. Referring to a previous case, the Tribunal highlighted that there was no obligation for the Clearing Agent to verify the exporter's credentials. Since there were no adverse findings against the Clearing Agent based on the evidence, the Tribunal deemed the imposition of a personal penalty unjustified. Consequently, the Tribunal allowed all four appeals by overturning the portion of the impugned order that imposed personal penalties on the appellants.