TaxTMI 
TaxTMI 
TaxTMI 
2025 (12) TMI 613
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.... of incriminating documents, pen drives/laptop/hard disk etc as well as recording of statements from various persons. Show cause notice dated 10.02.2015 (SCN) was issued invoking extended period of limitation and demanding differential duty along with applicable interest and proposing imposition of penalties under the provisions of the Customs Act. 3. The SCN also alleged that the appellant being a CHA was obligated to verify the antecedence, correctness of Importer Exporter Code (IEC) number, identity of his client and functioning of his client at the declared address by using reliable, independent, authentic documents, data or information. The notice alleged that the appellant knowingly undertook the CHA work by obliging the fraudulent importers, even after knowing well that the IEC holders are not the real importers and thereby abetted in the commission of offence. The notice hence alleged that the appellant is liable for penal action under section 114 AA of the Customs Act 1962 for the offences committed. 4. Pursuant to the reply filed by the appellant, after due process of law, the adjudicating authority held that the appellant admitted inter alia that he had under taken....
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....ionally made/used/caused to be made/used a false declaration, statement, or document in any material particular. No evidence shows that the appellant prepared, signed, or directed the preparation of any false invoice or declaration. Merely knowing that IEC holders were not the beneficial owners does not equate to knowing that valuation documents were false. c) that there was no direct evidence against Appellant. All evidence of fabrication/undervaluation emanates from the premises, records, and statements of other noticees. No documents were recovered from the appellant's premises showing altered values or falsified particulars. The impugned order does not cite any communication to the appellant from importers or other persons directing undervaluation. d) The Respondent has travelled beyond the scope of SCN. The Show Cause Notice did not contain any allegation whatsoever that the appellant had fabricated or forged any documents or knowingly submitted such documents before the Customs authorities. There was no averment, reference, or suggestion that the appellant had prepared, altered, or caused to be prepared any false or fabricated document. That the learned ....
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....responsible for filing Bills of Entry and handling customs clearance. In absence of any evidence of conscious knowledge, consent or connivance on the part of the Appellant. The ingredients of Section 132 read with Section 114AA of the Act are not satisfied. The liability, if any. rests on the CHA claim and the authorised person managing its day-to-day activities. g) that the department's act of provisionally releasing the goods to the same parties under Section 110A amounts to recognizing them as the "importer" within the meaning of Section 2(26) of the Customs Act. Having accepted their legal status for release, the department is estopped from later alleging that they were not the real importers. If they were fictitious, release itself could not have been made. Such contradictory conduct of approbating and reprobating vitiates the allegation in entirety. The appellant prays that the penalty imposed may be set aside. 6. Shri. N. Satyanarayana, authorized representative appearing for the respondent reiterated the findings of the appellate authority in the impugned order. 7. Heard both sides, perused the appeal records and the citation submitted. 8. The sole iss....
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....orrect in any material particular, in the transaction of any business for the purposes of this Act, shall be liable to a penalty not exceeding five times the value of goods." 26. Thus, in order to impose a penalty under Section 114AA, the following aspects need to be satisfied: a) It can be imposed only on a person b) Such a person should knowingly or intentionally: i) Make, sign or use ii) or cause to be made, signed or used c) Any declaration, statement or document i) which declaration, statement or document is false or ii) which declaration, statement or document is incorrect in any material particular d) the aforesaid actions should be in the transaction of any business for the purposes of this Act. 27. Firstly, we note that there are different types of actions, namely, make sign or use or cause to be made, signed or used, that are specified in the said provisions which can be performed with respect to a declaration, statement or document in the transaction of any business for the purposes of the act. This makes it imperative that the particular action being alleged against the person is p....