Penalty under Customs Act Section 117 found unsustainable where imported vehicles were not removed and duty had already been paid.

Penalty under Section 117 of the Customs Act, 1962 was found unsustainable against the Customs Broker because the vehicles remained available for sample drawal, were not removed from the Land Customs Station, and had already been assessed with duty paid; the factual basis for contravention was therefore absent. The Tribunal also noted that the broker had been discharged in proceedings under the Customs Brokers Licensing Regulations, which further made the penalty unwarranted. The penalty was set aside.

---

---

Issues: Whether penalty under Section 117 of the Customs Act, 1962 was sustainable against the Customs Broker for alleged movement of imported goods without out-of-charge, and whether the penalty could survive after discharge from proceedings under the Customs Brokers Licensing Regulations.

Analysis: The vehicles were found to be available for sample drawal by the DRI and were not taken away from the Land Customs Station. The goods had already been assessed and duty had been paid. In these circumstances, the factual basis for alleging contravention attracting penalty under Section 117 was not made out. The Tribunal also noted that the appellant had already been discharged in the proceedings initiated under the Customs Brokers Licensing Regulations, making the impugned penalty unwarranted.

Conclusion: The penalty under Section 117 of the Customs Act, 1962 was held to be not imposable and was set aside.

---