Custom House Agent and Freight Forwarder Complicit in Export Violation; Ordered to Make Pre-Deposit

The tribunal found both the Custom House Agent (CHA) and the freight forwarder complicit in attempting to export prohibited goods without declaration. Despite their claims of lack of awareness, the tribunal determined their involvement through lapses in verifying information and handling fraudulent documents. As a result, the tribunal directed both parties to make a pre-deposit for the admission of appeals, with the balance dues waived upon compliance and a stay on the collection of dues during the appeal process.

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Issues:
1. Penalty imposed on Custom House Agent (CHA) and freight forwarder for attempting to export prohibited goods without declaration in the shipping bill.

Analysis:
1. The judgment involves two applications from a Custom House Agent (CHA) and a freight forwarder arising from the same impugned order regarding the attempted export of prohibited goods without declaration in the shipping bill.

2. The CHA claimed that he was not aware of the contents of the sealed container and had filed the shipping bill based on the documents and instructions provided by the freight forwarder. He argued that since his involvement in the offense was not established, the penalty imposed on him was not sustainable.

3. The freight forwarder contended that he only supplied the container as instructed and was unaware of the prohibited goods inside. He asserted that his lack of knowledge about the contents absolved him from the penalty, requesting the waiver of pre-deposit for his appeal.

4. The Revenue opposed the appeals, alleging that both the CHA and the freight forwarder were complicit in the offense. They argued that the CHA's failure to comply with 'know your client' norms and association with the exporter indicated connivance. Similarly, they claimed that the freight forwarder's interactions with the exporter demonstrated awareness of the fraudulent activity.

5. The tribunal found that both applicants were not entirely unaware of the contents of the container. The CHA's lapse in verifying the exporter's identity and the freight forwarder's involvement in handling fraudulent documents indicated their complicity in the offense.

6. Consequently, the tribunal directed both applicants to make a pre-deposit of Rs.2,50,000 each for the admission of appeals within six weeks. Upon compliance, the balance dues from the impugned order were waived, and there was a stay on the collection of dues during the appeal process.

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