Settlement of the main importer's case extinguishes penalty exposure for the customs house agent as a co-noticee.

Penalty on a customs house agent was found unsustainable where the main importer had already settled the dispute before the Settlement Commission. The Tribunal applied the principle that settlement of the case against the main noticee carries the same consequence for co-noticees, so the penalty proceedings against the agent could not survive independently. The penalty order was therefore set aside and penalty was held not imposable on the appellant.

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Issues: Whether penalty imposed on a customs house agent was sustainable when the case against the main importer had already been settled before the Settlement Commission.

Analysis: The appellant was proceeded against as a customs house agent in proceedings arising out of the importer's case. The importer had settled the matter before the Settlement Commission. Relying on the view that settlement of the main noticee's case carries the same consequence for co-noticees, the Tribunal held that penalty could not survive against the appellant.

Conclusion: Penalty on the appellant was held to be not imposable and the order imposing penalty was set aside.

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