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TMI Blog2020 (1) TMI 204X X X X Extracts X X X X X X X X Extracts X X X X ..... fore liable to pay the customs duty. It does not matter if the importer or exporter entrusts this responsibility to somebody else, may be his own employee or an agent. The liability is on the importer or exporter only. The definition of importer also includes any person who holds himself out to be importer . In this case the appellant has not claimed to be importer. In fact, the bills of entry mention the name of the main importer as the importer for the consignments. Therefore, the liability of customs duty rests only upon the importer - Accordingly Section 114A also applied to the importer in this case. It cannot apply to customs broker whose offence was mis-declaring facts in the bills of entry. Section 114AA is meant for such off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eassessment by the officer under Section 17(4) of the Customs Act 1962. Duty liability was accordingly enhanced based on the price of contemporaneous imports reckoning the quantity declared by the appellant in their bills of entry. Subsequently, during examination, it was found that the quantity declared was much lower than what was imported. Accordingly, the matter was investigated and it was found that the importer had outsourced the entire operations to the appellant customers broker who had deliberately misdeclared the quantity of the goods in order to evade payment of customs duty. Both the customs broker (the appellant) and the importer had waived the requirement of show-cause notice and accordingly Speaking Order No. 6/2017-18 was is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unsel for the appellant submits that it is true that they were the customs broker for the consignment in question and they had employed one Shri Parthiban to file the bills of entry on their account. Shri Parthiban has mis-declared the quantity of goods in the bills of entry for which mistake they are liable. Accordingly they have already paid the penalty under Section 114AA imposed by the Deputy Commissioner. However, he would contest the imposition of penalty under Section 114A by the first appellate authority in the impugned order. He draws the attention of the Bench to this Section which reads as follows: SECTION 114A. Penalty for short-levy or non-levy of duty in certain cases. - Where the duty has not been levied or ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... into account : Provided also that in case where the duty or interest determined to be payable is increased by the Commissioner (Appeals), the Appellate Tribunal or, as the case may be, the court, then, the benefit of reduced penalty under the first proviso shall be available if the amount of the duty or the interest so increased, along with the interest payable thereon under section 28AA, and twenty-five per cent of the consequential increase in penalty have also been paid within thirty days of the communication of the order by which such increase in the duty or interest takes effect : Provided also that where any penalty has been levied under this section, no penalty shall be levied under sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses the customs duty to the appellant. Therefore Section 114A has been correctly invoked with respect to these goods. He also draws the attention of the Bench to regulation 11(g) of Customs Brokers Licensing Regulations 2013 which reads as follows: Regulation 11 Obligations of Customs Broker.-A Custom Broker shall ... .... (g) Promptly pay over to the Government, when due, sums received for payment of any duty, tax or other debt or obligations owing to the Government and promptly account to his client for funds received for him from the Government or received from him in excess of governmental or other charges payable in respect of the clearance of cargo or baggage on behalf of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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