TaxTMI 
TaxTMI 
2025 (8) TMI 343
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....oms in respect of the imports made from three ports namely, ICD Tughlakabad, New Delhi, Air Cargo Complex, New Customs House, New Delhi and JNCH Nhava Sheva, District Raigad, to the extent it imposes penalties upon the appellant under sections 112(a)(ii) and 114AA of the Customs Act, 1962 the Customs Act. 2. The appellant was granted a Customs Broker License under the provisions of the Customs Brokers Licensing Regulations. It filed Bills of Entries at the aforesaid three ports on behalf of M/S SPML India Ltd. the Importer for clearance of AMR/ Non-AMR Water Flow Meters the Product imported from Arad Technologies Ltd., Israel. The AMR/Non-AMR Flow Meters were classified under Customs Tariff Item CTI 9026 10 10 and all the Bills of Entrie....
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.... Noticee Company or advised them to file the Bill of Entry under CTH 9028 2000 for the said water meters. He further stated that the entry of CTH 9028 made in the certificate of origin appears to have been missed by them as the said certificate was not a mandatory document. Besides, the Customs Broker has failed to appreciate the entries made in First Schedule of the Customs tariff relating to CTH 9028 which covers supply or production liquid meters. From the import consignments i.e. commercial invoices, it was also clear that the import item i.e. AMR/Non-AMR water meters are meant for Delhi Jal Board which was also mentioned in the commercial invoice itself in foot notes. The Customs Broker made no enquiry with the Noticee Company to get c....
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....ed CTH 9028, they have never raised any query to the Noticee Company or advised them to file the Bill of Entry under CTH 9028 made in the certificate of origin appears to have been missed by them as the said certificate was not a mandatory documents. Besides, the Customs Broker has failed to appreciate the entries made in First Schedule of the Customs tariff relating to CTH 9028 which covers supply or production liquid meters. From the import consignments i.e. commercial invoices, it was also clear that the import item i.e. AMR/Non-AMR water meters are meant for Delhi Jal Board which was also mentioned in the commercial invoice itself in foot notes. The Customs Broker made no enquiry with the Noticee No. 1 to get clarification in the matter....
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....sions of the Customs Brokers Licensing Regulations and such proceedings were actually initiated but ultimately dropped by order dated 03.02.2021; (ii) The Bills of Entries were filed on the basis of import documents provided by the importer; (iii) The appellant cannot be held responsible for any dispute relating to confiscation; (iv) An allegation of mis-declaration/suppression cannot be made by merely alleging that different classification was mentioned in the Bills of Entry for claiming benefit of Exemption Notification; (v) Goods are not liable to confiscation and, therefore, no penalties can be imposed; (vi) The description of goods in the import documents has been shown as "Water Flow Meters....
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....lation to any goods, does or omits to do any act which act or omission would render such goods liable to confiscation under section 111, or abets the doing or omission of such an act, or (b) **** (c) **** Shall be liable to- (i) **** (ii) In the case of dutiable goods, other than prohibited goods, subject to the provisions of section 114A, to a penalty not exceeding ten per cent of the duty sought to be evaded or five thousand rupees, whichever is higher: PROVIDED that where such duty as determined under sub-section (8) of section 28 and the interest payable thereon under section 28AA is paid within thirty days from the date of communication of the order of the proper officer determining....
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....aration. There was no reason for the appellant to seek any clarification since the documents did describe the product. It also needs to be noted that there is nothing on the record to substantiate that the Customs Broker was made aware of the earlier consignments. In such circumstances, the imposition of penalty on the appellant under section 112(a)(ii) cannot be sustained. 15. The next issue that arises for consideration is whether penalty could have been imposed upon the appellant under section 114AA of the Customs Act. 16. Section 114AA of the Customs Act provides that if a person knowingly or intentionally makes, signs or uses, or causes to be made, signed or used, any declaration, statement or document, which is false or incorrec....