2004 (3) TMI 203 - AT - Customs

Tribunal overturns penalty for clearing agent in customs violation appeal

The Tribunal allowed the appeal filed by the clearing agent (CHA) named Shri Ranjeet Sanghvi, setting aside the penalty imposed under Section 112(a) of ... Penalty on clearing agent Issues:Violation of actual user condition for imported printing machines, imposition of penalty under Section 112(a) of the Customs Act, 1962.Analysis:The appellant's appeal challenged the order-in-original passed by the Commissioner of Customs, which imposed a penalty of Rs. 50,000 under Section 112(a) of the Customs Act, 1962, for violating actual user conditions related to the import of second-hand printing machines. The importers, M/s. BVL Offset Printers & M/s. Mamta Printers, were found to have sold the machines to domestic buyers instead of using them as per the permitted conditions. The appellant, a clearing agent (CHA) named Shri Ranjeet Sanghvi, contended that he was only involved in handling, packing, clearing, forwarding, and delivering the machinery on behalf of the importers, denying any knowledge or involvement in the violation of actual user conditions.The appellant argued that there was no evidence presented during adjudication or investigation to prove that he had prior knowledge of the importers' intention to violate the actual user condition. It was emphasized that the appellant's role was limited to customs clearance activities, and there was no indication that he actively assisted the importers in disposing of the imported machines in violation of the conditions. The appellant maintained that he could not have been aware of the post-import violation planned by the importers.The Tribunal acknowledged the validity of the appellant's contentions, noting that there was no evidence or allegation suggesting that the appellant had any role or knowledge regarding the importers' intention to breach the actual user condition. The Tribunal found that the appellant, being primarily involved in customs clearance work, could not have been expected to anticipate or prevent the importers from violating the conditions. Consequently, the Tribunal allowed the appeal, setting aside the impugned order of the Commissioner concerning the appellant, thereby absolving the appellant of the imposed penalty.