Customs House Agent penalty fails where no material shows knowing involvement in export misdeclaration.

Penalty on a Customs House Agent for alleged participation in export misdeclaration requires material showing knowing assistance or active role in the wrongful stuffing or export of goods. Here, the container was stuffed at the exporter's factory, the agent was not present, and no circumstantial evidence linked him to the misdeclaration of basmati as non-basmati rice. Laboratory and examination reports established only the nature of the goods, not the agent's involvement. On these facts, mens rea and participation were not proved, so the penalty was not justified and was set aside.

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Issues: Whether the Customs House Agent was liable for penalty for alleged participation in the exporter's misdeclaration of the goods as basmati rice instead of non-basmati rice.

Analysis: The relevant question was whether there was any material showing that the Customs House Agent knowingly assisted the exporter in the misdeclaration or had any role in the stuffing and export of the goods. The container was stuffed at the exporter's factory, the agent was not present there, and no circumstantial evidence established his involvement. The examination of the containers and laboratory report only showed that the goods were non-basmati rice. On the facts found, no mens rea or active participation attributable to the agent was established.

Conclusion: The penalty on the Customs House Agent was not justified and was set aside.

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