Courier penalty for alleged illicit import set aside where no evidence showed abetment, active participation, or connivance.

Penalty on a local associate of an overseas courier for alleged breach of the Courier (Imports and Exports) Clearance Regulations, 1988 was held unsustainable where the record did not show abetment, active participation, or connivance in the import of concealed goods. The appellant's role was confined to local handling and delivery, and the mere obligation to verify the genuineness of consignor and consignee, or an alleged lack of due diligence, was insufficient to establish liability for illicit import. The penal consequence was therefore set aside.

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Issues: Whether the penalty imposed on the courier company for alleged violation of the Courier (Imports and Exports) Clearance Regulations, 1988 was sustainable in the absence of evidence of abetment or active connivance.

Analysis: The goods were found concealed in imported consignments and the investigation suggested misuse of the courier channel, but the appellant functioned only as a local associate of an overseas courier operator. The consignments were still under Customs custody when the investigation was conducted, and the role of the appellant was limited to local handling and delivery. The obligation to verify the genuineness of the consignor and consignee, and the allegation of failure to exercise due diligence, could not by itself establish that the appellant had abetted the import of contravening goods. The finding of liability was therefore not supported by sufficient evidence within the scope of the regulations relied upon.

Conclusion: The penalty was not sustainable and was set aside in favour of the assessee.

Final Conclusion: The appeal succeeded and the penal consequence imposed on the appellant was annulled.

Ratio Decidendi: A local associate of an overseas courier cannot be penalised for abetment of illicit import merely on the basis of a limited delivery role unless the record shows sufficient evidence of active participation or connivance in the import of the contravening goods.

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