DRI issued show cause notice to chartered accountant

[dipal shah]

Treat as urgent and confidential

 

I have issued one Production certificate duly verifing PAN NO, SSI certificate and photo copy of rent deed but without verifying factory premises to my friend client who is advocate who is saying it is used in bank loan. client of my friend is committed fraud and arrested by DRI. Dri investigated that there is no factory during red. Now department of custom, Chennai issued of show cause notice why we not imposed penalty againts you under section 112(a) of custom act. If you know any case law. Kindly help me. 

AI Summary

Knowledge of diversion is the key threshold before imposing penal liability on a certifying professional in customs matters.
Customs issued a show cause notice to a chartered accountant for issuing a production certificate without verifying premises, alleging the certificate enabled duty free imports that were later diverted; tribunal authorities require evidence of the certifier's knowledge of diversion or abetment before imposing penal consequences, and absent such evidence penalties have been set aside, indicating the critical defence is lack of knowledge of diversion.