TaxTMI 
TaxTMI 
2026 (7) TMI 473
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....export of 'Red Sanders' under the Shipping Bill dated 04.01.2019 filed by Customs Broker M/s. Transorion Logistics Pvt. Ltd., proceedings were initiated and recovered 'Red Sanders' from the container on 11.01.2019. On completion of the investigation, show cause notice was issued on 10.07.2019 to the exporter and others. The show cause notice was also issued to the Appellant on the ground that the Appellant failed to deploy their own trailer /vehicle for transhipment of the export consignment in the name of M/s. Om Siva Exporters as stipulated in the Regulation under Handling of Cargo in Customs Area Regulations, 2009 and through such omission, they had abetted the act of smuggling of Red Sanders logs which are liable for con....
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....nd Commissioner (Appeals) as per the impugned order, imposed penalty of Rs. 25 lakhs on the Appellant under Section 114 of the Customs Act, 1962. The finding of the first Appellate authority is reproduced below:- "As regards the non-imposition of penalty on M/s CWC vide the OIO, it is noted that the Appellant in the Review Cum Authorization has sought imposition of penalty under Section 114 of the Customs Act, 1962. I have gone through the memorandum of cross objections filed by M/s. CWC and the same are on record. There has to be an element of vicarious liability affixed to M/s. CWC and they cannot be completely absolved and when they function in their capacity as Customs Partners, they are expected to make sure that they have the....
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....any proceedings initiated by Customs authority under the above said Regulation, present issue regarding penalty is prima facie unsustainable. Learned Counsel further submits that the Appellant being a Customs Cargo Service Provider (CCSP) is responsible for the secure transit of the goods from their place to the Port Area. The Regulation doesn't explicitly specify what secured transit would mean, i.e., whether physical accompaniment of the container by the Service Provider or any other means has not been defined in the said sub-clause in terms of secured transit. In this connection, it is submitted that wherever the law is ambiguous leaving it wide open for interpretation, clarification is issued by the department through Circulars. In ....
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....k) of the Handling of Cargo in Customs Areas Regulations, 2009. The guidelines provided under these Notices and Circulars have been scrupulously followed in case of self-sealing containers. In respect of all other cases, the containers are sealed with Customs One Time Seal after the examination of the cargo by the proper officers of Customs and allowed to exit the CFS by noting the exit time. The receipt of the container at the entry port is ascertained in the form of EIR (Equipment Interchange Report /Encoded Information Reading in the case of RFID tagged containers). In this case the transit of the container within the prescribed time was ensured by ascertaining the EIR report collected from the Port Authorities and the same is evident fr....
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....ing Corporation, CFS Bangalore, are responsible for secure transport of goods between one Customs Area to another Customs area and are required to execute a bond for transport of export goods from one Customs area to another Customs area in terms of Regulation 5(4) ibid. Shri J. Navukkarasu, the then Manager of M/s. Central Warehousing Corporation, Bangalore, the Customs Cargo Service Provider, vide his voluntary statement dated 18.06.2019 had admitted that they had not provided transport for movement of the export container of M/s. Om Shiva Exports, Bangalore from M/s. CWC, CFS Bangalore to Adani Kattupalli Port.". Thus, we find that only after proper consideration of the issue in detail, Adjudication Authority dropped the proposal for ....