2018 (12) TMI 1841 - AT - Customs

Tribunal Upholds Decision on Customs Agents & Manager, Emphasizes Evidence & Statutory Interpretation

COMMISSIONER OF CUSTOMS (EXPORT), MUMBAI Versus STYALE CORPORATION

COMMISSIONER OF CUSTOMS (EXPORT), MUMBAI Versus STYALE CORPORATION - 2020 (371) E.L.T. 772 (Tri. - Mumbai) Issues:- Imposition of penalty on CHAs for non-compliance with license conditions- Imposition of penalty on the manager for violation of license conditions- Calculation of penalty under Section 114A of the Customs Act, 1962Imposition of Penalty on CHAs:The Revenue appealed against the impugned order for not imposing penalties on the CHAs, Shri Omprakash Tiwari and M/s. S.K. Mehra, alleging their responsibility in ensuring compliance with license conditions. The Tribunal found that the role of CHAs is limited to the clearance of goods and does not extend to monitoring the subsequent use of the imported items. As there was no evidence of negligence in their duties during clearance, the imposition of penalties under Section 112(a) was deemed unjustified. The Tribunal upheld the decision to drop the show cause proceedings against the CHAs.Imposition of Penalty on Manager:Regarding the penalty on the manager, Shri Jagdish Sharma, the Revenue argued that his possession of an ID card for collecting licenses implied awareness of the export-import policy, justifying penalty under Section 112(a). However, the Tribunal emphasized the lack of evidence proving the manager's involvement in actions leading to the goods being liable for confiscation. Since the Revenue failed to substantiate the alleged violations, the Tribunal deemed the non-imposition of penalty on the manager as appropriate and justified.Calculation of Penalty under Section 114A:The Revenue contended that the penalty under Section 114A should include both duty and interest amounts evaded. However, the Tribunal interpreted the statutory provisions to mandate an equal penalty either on the duty or interest determined under Section 28. The use of the word 'or' between duty and interest precluded the interpretation of imposing a penalty equal to both duty and interest. Therefore, the Tribunal upheld the impugned order's calculation of an equal penalty in line with the confirmed duty demand.In conclusion, the Tribunal dismissed the Revenue's appeals, finding no merit in their arguments based on the issues raised. The decision highlighted the importance of substantiating claims with evidence and interpreting statutory provisions accurately to determine penalties in customs-related matters.