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of <h1>Import appeal rules in favor of companies in customs dispute. Penalties lifted. Customs Act sections clarified.</h1> The appeal of M/s. Das Lagerway Wind Turbines Ltd. (DLWT) regarding the import of capacitors was disposed of with a finding that they were not liable to ... Penalty on CHA - Misdeclaration of goods Issues involved: Import of capacitors, Customs duty exemption, Liability of importer and Customs House Agent (CHA), Imposition of penalties.Summary:Import of Capacitors:The case involved the import of capacitors by M/s. Das Lagerway Wind Turbines Ltd. (DLWT) from Netherlands under a contract with a Dutch company. The goods were claimed to be power capacitors instead of the capacitors mentioned in the Customs Notification. A show cause notice was issued proposing confiscation of goods and penalties under relevant sections of the Customs Act.Liability of Importer and CHA:M/s. DLWT disowned liabilities related to the import, stating that the supplier had undertaken duty payment and clearance. The CHA challenged the penalty imposition, claiming they had doubts about the Customs Notification applicability. The importer and CHA defended their positions based on the contract terms and actions taken during the import process.Imposition of Penalties:After examining the evidence and submissions, it was found that M/s. DLWT did not suffer any monetary loss as the Dutch company had paid the duty, fine, and penalty. The liability to pay these dues rested with the importer as per the Customs Act. The penalty imposed on M/s. DLWT under Section 114A was deemed unsustainable as the relevant show cause notice did not allege non-payment or short-payment of duty due to collusion or wilful misstatement. The CHA's genuine doubt regarding the eligibility of capacitors for duty exemption absolved them from liability under Section 112 of the Customs Act.Disposition of Appeals:The appeal of M/s. DLWT was disposed of with a finding that they were not liable to be penalized under Section 114A. The CHA's appeal was allowed based on their genuine doubt regarding the Customs Notification. The impugned order was modified accordingly, and the liabilities and penalties were reassessed based on the findings of the Tribunal.
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