Customs House Agent's Appeal Allowed Against Penalty for Misdeclaration; Tribunal Clarifies Applicable Sections

The Appellate Tribunal CESTAT, Chennai allowed the appeal by a Customs House Agent (CHA) against a penalty imposed under section 117 of the Customs Act for misdeclaration in a bill of entry. The Tribunal held that section 117 is meant for non-compliance or contravention of Act provisions, not misdeclaration, which falls under different sections. Consequently, the penalty under section 117 was deemed inapplicable, leading to its vacation and the appeal being allowed.

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Issues involved: Interpretation of penalty provision u/s 117 of the Customs Act for misdeclaration in bill of entry.

The judgment by the Appellate Tribunal CESTAT, Chennai dealt with an appeal by a Customs House Agent (CHA) against a penalty imposed on them u/s 117 of the Customs Act. The show-cause notice alleged misdeclaration in a bill of entry signed by the CHA, triggering the penalty provision. The appellant argued that u/s 117 could not be invoked for misdeclaration, as it pertains to non-compliance or contravention of Act provisions. The Tribunal agreed, noting that u/s 117 is a residual penal provision applicable when there is a failure to comply or contravene Act provisions, which was not the case here. Misdeclaration in a bill of entry falls under different sections for confiscation and penalties. As such, the penalty u/s 117 was deemed inapplicable, leading to its vacation and allowing the appeal.

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