https://www.taxtmi.com/caselaws?id=775207 The Calcutta HC dismissed an appeal challenging penalty imposed under Section 114 of the Customs Act on a Customs House Agent (CHA). The appellant failed to conduct proper KYC verification of clients and lacked authorization letters or verification reports for a Nepal-based company's transit clearance for Korea-bound cargo. The appellant argued no abetment was established, but the Tribunal correctly held that Section 114(i) covers both acts of omission/commission and abetment. The CHA had primary responsibility to fulfill KYC norms and could not rely on oral information alone. Despite finding the CHA liable for failing in intermediary duties regarding attempted Red Sander wood export, the Tribunal reduced penalty from Rs.50 lakhs to Rs.4 lakhs. The HC found no substantial questions of law arose and upheld the Tribunal's decision. en-us Mon, 14 Jul 2025 00:00:00 +0530 Tue, 22 Jul 2025 08:25:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=775207 The Calcutta HC dismissed an appeal challenging penalty imposed under Section 114 of the Customs Act on a Customs House Agent (CHA). The appellant failed to conduct proper KYC verification of clients and lacked authorization letters or verification reports for a Nepal-based company's transit clearance for Korea-bound cargo. The appellant argued no abetment was established, but the Tribunal correctly held that Section 114(i) covers both acts of omission/commission and abetment. The CHA had primary responsibility to fulfill KYC norms and could not rely on oral information alone. Despite finding the CHA liable for failing in intermediary duties regarding attempted Red Sander wood export, the Tribunal reduced penalty from Rs.50 lakhs to Rs.4 lakhs. The HC found no substantial questions of law arose and upheld the Tribunal's decision. Case-Laws Customs Mon, 14 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=775207