Customs Tribunal upholds penalty on CHA for mis-declaration under Customs Act.

The Tribunal upheld a penalty of Rs. 1.00 lakh imposed on a Customs House Agent (CHA) under the Customs Act for mis-declaration in consignments of handloom woven silk made-up articles meant for export. Despite the appellant's argument of lack of evidence proving awareness of mis-declaration, the Tribunal found merit in the Revenue's contention based on a representative's admission of knowledge of discrepancies. Citing a Delhi High Court decision, the Tribunal held that a CHA is obligated to ensure accurate declarations, leading to the dismissal of the appeal and upholding of the penalty.

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Issues involved: Imposition of penalty on a Customs House Agent (CHA) under the Customs Act for mis-declaration of goods and weight in consignments meant for export from a Special Economic Zone.

Summary:
The appellant, a CHA, appealed against a penalty of Rs. 1.00 lakh imposed under the Customs Act for mis-declaration in two consignments of handloom woven silk made-up articles meant for export. The Revenue Officers found discrepancies in the weight and quality of the goods, which were declared as handloom woven silk but were actually of poor quality cotton. The Revenue contended that the CHA was aware of the mis-declaration but did not inform the Customs Officials, thus making them liable for penalty.

The appellant argued that there was no evidence to prove their awareness of the mis-declaration, as they filed the shipping bills based on documents provided by the exporter. However, the Revenue pointed out that a representative of the appellant's firm, Shri Sanjeev Tewary, had detailed knowledge of the goods' quality and weight discrepancies but did not disclose this information to the Customs Authorities. The Revenue also cited a decision of the Hon'ble Delhi High Court to support their case.

The Tribunal found merit in the Revenue's contention based on Shri Sanjeev Tewary's statement, where he admitted being present during the loading of the goods and thus aware of the discrepancies. Referring to the Delhi High Court decision, the Tribunal held that a CHA is obligated to ensure correct entries in the bill of entry and accurate declaration of goods' value and description. Therefore, considering the circumstances and the legal precedent, the Tribunal dismissed the appeal, upholding the penalty imposed on the CHA.

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