The Customs Excise and Service Tax Appellate Tribunal (CESTAT), Delhi bench has observed that since Customs House Agent (CHA) has no, no case of abetment against the CHA.
Red sandalwood and sandalwood worth Rs.28,60,800/- and Rs.12,99,600/- respectively were found hidden between furniture which was to be exported during the examination and was confiscated by the authorities. A penalty was imposed on Ms. Asha Narang, the proprietor of All Craft Exports, along with others involved including Mr. Ramvir Singh, the CHA. Ramvir Singh appealed to Hon’ble Justice Anil Choudhary at CESTAT, New Delhi questioning his penalty of Rs.1 lack under S.144(i) of the Customs Act. Adv. Dr. Ashutosh and Adv. Ravi Kapoor appeared for Ramvir Singh and the Commissioner of Customs respectively.
The Adjudicating Authority had observed that the appellant has been negligent in performing their duty as CHA but, the counsel for the appellant stated that all duties of the CHA were completed with the utmost diligence as all the document was verified by him and was found to be true. The goods were factory stuffed and sealed, raising no occasion for the appellant to have doubts regarding the genuineness of the declaration made by the exporter and certified by the department officer. The investigation revealed that no extraordinary remuneration was received by the appellant. Also, there was no allegation of the appellant’s knowledge of the malpractice on the show cause notice.
The judicial member considering all the above found that the CHA has no involvement in this attempted export of prohibited goods hence, no case of abetment and the penalty was dismissed.
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