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2019 (8) TMI 687 - AT - Customs


Issues:
- Validity of ETA certificates for wireless fitness devices
- Requirement of country of manufacture on ETA
- Liability for fake/invalid ETA
- Imposition of penalties under Sections 112(a) and 114AA of the Customs Act, 1962

Analysis:

1. Validity of ETA certificates for wireless fitness devices:
The appellant imported wireless fitness devices and submitted ETA certificates for clearance. The certificates were found to be fake as they were issued for goods manufactured in the USA, while the imported goods were from China. The Tribunal held that the ETA certificates were crucial for goods operating in specific frequency bands and that the certificates produced were invalid, leading to the initiation of investigations.

2. Requirement of country of manufacture on ETA:
The appellant argued that the country of manufacture was irrelevant for ETA validity as long as the technical specifications were met. However, the Tribunal emphasized that the ETA's authenticity was essential, and the failure to produce a valid ETA from the Ministry of Telecommunication led to the confiscation of goods under Section 111(d) of the Customs Act.

3. Liability for fake/invalid ETA:
The appellant contended that they were not directly involved in obtaining fake ETAs, shifting blame to a third-party consultant. Despite this, the Tribunal held that the importer is responsible for ensuring compliance with statutory requirements, making them liable for penalties under Section 112(a) of the Customs Act.

4. Imposition of penalties under Sections 112(a) and 114AA:
The Commissioner imposed penalties under Sections 112(a) and 114AA, which the Tribunal reviewed. While upholding the penalty under Section 112(a) due to the importer's responsibility, the Tribunal set aside the penalty under Section 114AA. It was reasoned that mens-rea is necessary for penalties under Section 114AA, and the appellant's lack of intent in using false documents warranted the penalty's removal.

In conclusion, the Tribunal partially allowed the appeal, reducing the penalty under Section 112(a) but setting aside the penalty under Section 114AA, emphasizing the importer's responsibility for compliance with statutory requirements and the consequences of submitting fake documents for customs clearance.

 

 

 

 

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