Customs House Agent penalty requires proof of knowledge or active participation; mere document signing without verification is insufficient.

Penalty under the Customs Act was unsustainable against a Customs House Agent where the record showed only that he signed shipping documents without verification. The tribunal found no evidence that he knew of the concealed sandalwood, was told of the concealment, or had abetted the attempted export of prohibited goods. In penal proceedings, mere failure to verify documents is insufficient; the department must show knowledge, mala fide intention, conscious participation, or active involvement in the contravention. On that basis, the penalty was set aside.

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Issues: Whether penalty under the Customs Act, 1962 could be imposed on a Customs House Agent who signed shipping documents without verification, in the absence of evidence of knowledge, abetment, or active role in the attempted export of prohibited goods.

Analysis: The show cause notice proceeded only on the basis that the Customs House Agent appended his signature to the shipping documents without asking for details or verifying the cargo. The record did not establish that he knew of the concealed sandal wood, that the exporter informed him of such concealment, or that he had abetted the attempted export. In penal proceedings, mere failure to verify documents, without proof of knowledge or conscious participation, is insufficient to sustain penalty. The cited decisions consistently held that penalty under the Customs Act cannot be imposed on a clearing agent or Customs House Agent unless some degree of knowledge, mala fide intention, or active involvement is shown.

Conclusion: Penalty under Section 112 of the Customs Act, 1962 was not sustainable against the Customs House Agent and was set aside.

Ratio Decidendi: Penalty on a Customs House Agent for customs contravention cannot be sustained in the absence of evidence showing knowledge, abetment, mala fide intention, or active participation in the offence; mere signing or processing of documents without verification is not enough.

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