2022 (9) TMI 756 - AT - Customs

Customs Agent Appeal Dismissed for Penalty Reduction under Customs Act

M/s Meghna Clearing and Forwarding P. Ltd. Versus Commissioner of Customs (Export), Mumbai

M/s Meghna Clearing and Forwarding P. Ltd. Versus Commissioner of Customs (Export), Mumbai - TMI Issues:Confirmation of penalty reduction under Section 114(iii) of the Customs Act from Rs. 2,00,000 to Rs. 50,000 on the Appellant is challenged.Analysis:1. The appeal challenges the reduction of penalty imposed on the Appellant under Section 114(iii) of the Customs Act from Rs. 2,00,000 to Rs. 50,000 by the Commissioner (Appeals). The case involves the filing of two manual shipping bills by the Appellant as a Customs House Agent (CHA) for a company at SEZ, Panvel. The goods were handled for export without proper examination and endorsement, leading to penalties imposed on the Appellant and the Ground Handling Agency (GHA) by the Assistant Commissioner of Customs.2. The Appellant's Counsel argued that the Appellant's fault was not informing Customs Authorities and failing to stop loading after informing the GHA. Citing various case laws, the Counsel contended that penalties under CHA License Regulation should apply instead of Section 114(iii) of the Customs Act. The Respondent's Representative argued that intention is immaterial for penalty imposition and pointed out discrepancies in the Appellant's statements and actions.3. The Member (Judicial) analyzed the arguments and case laws cited. It was noted that penalties under CHA License Regulation differ from those under the Customs Act. The judgment of the Hon'ble Madras High Court was considered, emphasizing that the Customs Act encompasses various violations, unlike the CHA License Regulation. The Member highlighted that parallel proceedings can occur under different laws without violating constitutional provisions.4. The Member further discussed the admission of guilt by the Appellant's employee and the responsibility of the Customs broker for employee actions as per the CHA Licensing Regulation. The Member differentiated this case from precedents where denial of involvement was common, emphasizing the direct responsibility of the Customs broker for employee acts. The Tribunal dismissed the appeal, confirming the penalty reduction under Section 114(1) of the Customs Act to Rs. 50,000 imposed on the Appellant CHA by the Commissioner of Customs (Appeals).This detailed analysis covers the issues, arguments presented, relevant case laws cited, and the final decision of the Appellate Tribunal CESTAT MUMBAI regarding the penalty reduction under the Customs Act for the Appellant.