Case Law Details
Behag Overseas Vs Commissioner of Customs (CESTAT Chennai)
Misdeclaration of goods and attempt to export such goods is punishable under Section 114 of the Customs Act. A Customs House Agent, who is a party to the mis-declaration, is liable to pay penalty.
Facts- On specific intelligence, it was alleged that red sanders log are being smuggled out in the export consignment. Accordingly, the officers worked out the market value of the red sanders seized to be Rs.5,28,75,000/- @ Rs.45 lakhs per MT. The container used to carry the red sanders logs for illicit export was also liable for confiscation.
However, the adjudicating authority dropped the proposal to impose penalty under sec 114(i) against the Customs Broker stating that there is no evidence that the appellant has abetted the smuggling plan. Against such order, the Department filed appeal before the Commissioner (Appeals) who set aside the order passed by the adjudicating authority as far as it relates to non-imposition of penalty on the appellant and remanded the matter to the adjudicating authority. Aggrieved by such order of remand, the appellant is now before the Tribunal.
Conclusion- The Hon’ble HC in the case of Sri Rama Thenna Thayalan had an occasion to consider similar set of facts wherein there was an attempt to smuggle red sanders. It was held that it is incorrect to say that CHA is only liable under Customs House Agents’ Licensing Regulations for such violations.
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