2015 (10) TMI 186

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....each was imposed on the appellants, namely Shri Nandu Shinde Director of M/s. Staad Akshay Marine Services Pvt. Ltd. and Shri Ashok Jaiswal, Partner of CHA Firm M/s. Jai International, under Section 114(i) of the Customs Act, 1962. I am passing a common order for both appeals. 2. The facts are that DRI, Mumbai Zonal Unit, on prior intelligence intercepted a container at Nhava Sheva Port, which was meant for export and detected Red Sanders Wood weighing 8600 kg, instead of the goods coir ropes which were declared in the invoice and the shipping bill. The export firm M/s. Ratan International has not been traced out and the holder of IEC code mentioned in the shipping bill also could not be traced out. Investigations revealed that the fraud w....

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....sioner of Customs (EP) Vs. P.D. Manjrekar reported in 2009 (244) E.L.T. 51 (Bom.) and in the case of Commissioner of Customs, Mumbai Vs. M. Vasi reported in 2003 (151) E.L.T. 312 (Tri.-Mumbai) to contend that in cases of abatement, department has to prove knowledge on the part of the accused for sustaining penalty under the Customs Act. 5. The Ld. AR relied on the findings of the adjudicating authority and the appellate authority which have described in detail the acts of omission and commission on the part of the appellants which led to smuggling of Red Sandalwood. 6. I have carefully gone through the submissions of both sides. I note that the attempt to smuggle Red Sandalwood was a carefully planned operation involving various people bu....

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....mar Jain to bring authorization along with the IEC holder. He did not advise his client to comply with the provisions of the Customs Act as required under Rule 13(d) and did not exercise due diligence to ascertain the correctness of any information with reference to clearance of cargo as required under Rule 13(e). For ready reference the text of the Regulation 13 is reproduced below: REGULATION 13. Obligations of Customs House Agent. - A Customs House Agent shall - (a) obtain an authorisation from each of the companies, firms or individuals by whom he is for the time being employed as Customs House Agent and produce such authorization whenever required by the Deputy Commissioner of Customs or Assistant Commissioner of Customs; (b) transa....

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....i International CHA firm, I note that illegally lent out his CHA license to Shri Nandu Shinde. In his statements he admitted that he agreed to lend his CHA License to Shri Nandu Shinde on a monthly payment basis. He agreed with the confessional statements given by Shri Nandu Shinde. He agreed that being the CHA licence holder under which the consignments were attempted to be smuggled, he should have ensured that the correct legal procedures should have been followed before undertaking the export clearance work of the consignment. He also agreed that it was incorrect on his part to have allowed the use of the CHA License and for not obtaining the authorization under Rule 13(a) of CHALR. He failed to exercise due diligence and he also violate....