TaxTMI 
TaxTMI 
2002 (3) TMI 94
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....aled forgery was done by certain employees of the CHA and they had not paid any Customs Duty, since all signature were forged. The goods were delivered after such clearances to M/s. Mahavir Industrial Supplier, the importer. This modus operandi was found to be conducted on 11 other such import consignments, which were located. The admission of the employee and result of the enquiry also extend to revelation of forging of export document declaration and signature also. 2.Since it appeared that consequent to the forgery committed, Shri Masood Pasha, Clerk and Shri S. Gilbert, Manager of the CHA, cleared imported goods from Bangalore Air Cargo Complex without examination, assessment and payment of duty and that these two employees of the CH....
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....ion 112(a)(ii) and Rs. 50,000/- under Section 114(iii) of the Customs Act, 1962. (ii) A sum of Rs. 2,31,351/- appropriated from the deposit of Rs. 4 lakhs made by CHA against the differential duty demand made on the individual importers and ordered the appropriation of the balance Rs. 1,68,649/- towards the penalty imposed under Sections 112 and 114 of the Customs Act, 1962. 4.We have heard both sides and considered the matter and find :- (a) There is no contest before us as regards the findings on forgery and the misappropriation of duty amounts as recovered from the importers by the Manager and the Clerk of the CHA. The Commissioner has recorded i....
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....rder to be valid. It is premature, is required to be set aside with consequential relief to the appellants herein, CHA. (b) As regards the imposition of the penalty, the Commissioner in Para 54 has based it on the following grounds to attract VICARIOUS LIABILITY. (i) No proper supervision/monitoring was exercised by CHA on transactions by their representatives (SIC-employees) with Customers. (ii) No verification effected, signatures made in a casual manner, resulting in misdeclarations of value and incorrect applications of foreign exchange rates documents not verified. (iii) ....
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.... of a preconcert on Part of CHA due to nonfeasance or negligence, as arrived at by the Commissioner, do not impress us. The employer is not liable vicariously for the criminal acts of its employees, if the acts performed are not within the scope of the employment. No material has been brought on record that there was a preconcert or knowledge on part of the main persons in-charge of the Private Limited Company, Head Quartered at Bombay about the criminal intent and conduct of the Manager and the Clerk at Bangalore Branch. We cannot, therefore find any reason of a visit of penalty under the Customs Act on CHA company. When we find no liability on penalty under Customs Act, Section 112 or 114, and the appropriation as ordered is also not appr....