Case Law Details
Chakiat Agencies Vs Commissioner of Customs (Exports) (CESTAT Chennai)
CESTAT Chennai held that Custom House Agent (CHA) cannot be expected to examine and ensure the nature of the goods in the consignment. Accordingly, penalty u/s 114 of the Customs Act cannot be levied on CHA alleging that they didn’t ensure correct classification of the goods.
Facts- Based on the intelligence that “Muriate of Potash”, a restricted item for export, is smuggled out of India in the guise of “Industrial Salt”, the Officers of Custom House, Chennai detained an export consignment of 150 MTs of cargo declared as “Industrial Salt” on 24.07.2009.
The goods were examined in the presence of two independent witnesses, CHA, representative of exporter and the representative of CFS. On a reasonable belief that the consignment is mis-declared, samples were drawn for the purpose of chemical examination. The samples were forwarded to M/s.Coromandal Fertilizers Ltd., Chennai on 29.07.2009 for the purpose of chemical analysis to confirm the composition. After chemical examination, it was found that the consignment was “Muriate Potash” (Potassium Chloride).
Based on the investigation, show cause notices were issued to the exporter and various other persons including M/s.Chakiat Agencies, who is the CHA, and Shri Soji Kuriakose who is the Manager(Exports) of the CHA firm (the appellants herein). After adjudication, the original authority imposed penalty of R.1,00,000/-each on the appellants. The above appeals have been filed against such order.
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