2017 (1) TMI 588 - AT - Customs

Tribunal modifies penalties under Customs Act: Appellant penalized for non-compliance, not active involvement

Shri Dev Raj Vermani Versus CCE, New Delhi

Shri Dev Raj Vermani Versus CCE, New Delhi - 2017 (349) E.L.T. 750 (Tri. - Del.) Issues:Imposition of penalty under Sections 114(i), 114(iii), and 117 of the Customs Act, 1962 on a Custom House Agent (CHA) for alleged abetment in improper exportation of goods with intent to claim higher drawback.Analysis:Issue 1: Penalty under Section 114(i) and 114(iii)The appellant, a CHA, was penalized for abetting improper exportation of goods. The appellant argued that lapses occurred due to the proprietor's health issues and that they did not gain from the drawback received by the exporter. The department alleged the appellant failed to verify exporter details, leading to improper exports. The tribunal found no evidence of active pursuit of improper exportation by the appellant. Lapses in verification were noted but deemed to fall under Customs Broker Licensing Regulation, not warranting penalty under Section 114. Citing the case of Nirmal Kumar Agarwal, the tribunal set aside the penalty under Section 114.Issue 2: Penalty under Section 117A penalty of Rs. one lakh was imposed under Section 117 for contravention not expressly mentioned elsewhere. The tribunal upheld this penalty, considering the appellant's conduct covered by this section. The appellant's failure to comply with duties under the Act justified the penalty under Section 117.In conclusion, the tribunal modified the impugned order by setting aside the penalty under Section 114 and upholding the penalty under Section 117. The judgment was pronounced on 6.1.2017 by the tribunal members, Ms. Archana Wadhwa, and Mr. V. Padmanabhan.