Officer assessing Bill of Entry sanctions ATA Carnet breaches under Customs Act Sections 2(34), 5, 17, 111(o)

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....The CESTAT held that the proper officer to sanction non-observance of exemption conditions under the ATA Carnet Scheme is the officer who assesses the Bill of Entry, as per sections 2(34), 5, 17, and 111(o) of the Customs Act. In this case, the Commissioner, who adjudicated the matter post-importation, failed to consider sanctioning the breach of the re-export condition within the prescribed time. The Tribunal ruled that sanctioning the non-observance under section 111(o) precludes confiscation under section 111 and penalty under section 112. The discretion to confiscate or impose penalty must be exercised judicially, not arbitrarily. Since the Commissioner did not exercise this discretion properly, the non-observance was deemed sanctioned, the impugned confiscation and penalty order was set aside, and the appeal was allowed.....