1993 (10) TMI 177 - AT - Customs

Tribunal Upholds Conspiracy Charge for Using Forged Documents in Customs Clearance

WINGS WEAR PVT. LTD. Versus COLLECTOR OF CUS., DELHI

The tribunal upheld the charge of conspiracy to defraud against the importer and clearing agent's proprietor for using forged documents for customs ... Penalty Issues:1. Allegation of conspiracy to defraud by submitting forged documents for customs clearance.2. Imposition of penalties on the importer and the proprietor of the clearing agent.3. Lack of evidence to sustain the charge of conspiracy.4. Responsibility of the importer for clearance of goods and payment of duty.Analysis:Issue 1: Allegation of conspiracy to defraudThe case involved the clearance of industrial sewing machines and parts imported from Hong Kong using forged TR 6 challans. The appellants engaged a clearing agent, who failed to deposit the duty amount in the bank, leading to allegations of conspiracy to defraud intentionally. The adjudicating authority upheld the charge of conspiracy and imposed penalties on the importer and the clearing agent's proprietor.Issue 2: Imposition of penaltiesThe appellants cooperated with the Customs Department to ensure payment of the duty amount. The clearing agent admitted to receiving the duty amount but failing to deposit it promptly. The tribunal found insufficient evidence to establish a conspiracy between the appellants and the clearing agent. However, it held the importer responsible for ensuring proper payment of duty and documentation for customs clearance. The penalties imposed were reduced to Rs. 10,000 based on the lack of evidence for conspiracy.Issue 3: Lack of evidence for conspiracyBoth judges agreed that there was a lack of concrete evidence to support the charge of conspiracy. The Department failed to prove a deliberate intent to defraud on the part of the importer. The tribunal emphasized the importance of proper documentation and payment of duty for customs clearance but acknowledged the importer's lack of direct involvement in the clearing agent's actions.Issue 4: Responsibility of the importerWhile the tribunal recognized the importer's responsibility for ensuring proper clearance and duty payment, it also noted the element of carelessness or negligence in overlooking the clearing agent's actions. The penalties were reduced considering the totality of the circumstances and the lack of conclusive evidence for conspiracy. The judgment highlighted the need for importers to exercise caution and diligence in customs clearance processes.In conclusion, the tribunal rejected the appeal while modifying the penalties imposed, emphasizing the importer's duty to ensure compliance with customs regulations and the importance of proper documentation in import processes.