Transmarine Corporation Vs Commissioner of Customs (CESTAT Chennai)
The appeals were filed by two Customs Brokers against a common Order-in-Original dated 08.03.2024 by which the Commissioner of Customs, Chennai-II imposed penalties of ₹3,00,000 each under Sections 112(a) and 114AA of the Customs Act, 1962. The penalties arose from proceedings relating to imports made by M/s Larsen & Toubro Limited, Mumbai.
The importer was engaged in the import of wheel loaders. The Revenue alleged that the importer had incorrectly classified the imported goods in order to avail a concessional rate of customs duty. Insofar as the Customs Brokers were concerned, it was alleged that they had knowingly overlooked the true nature and correct Customs Tariff Item (CTI) of the imported wheel loaders. According to the Revenue, this conduct facilitated the evasion of customs duty by enabling the importer to claim concessional duty benefits.
A show cause notice dated 31.07.2023 was issued proposing, among other things, the imposition of penalties under Sections 112(a) and 114AA on the two Customs Brokers as co-noticees. Although the brokers filed replies to the notice, the Commissioner, being dissatisfied with their explanations, confirmed the proposed penalties through the impugned order. This led to the filing of the present appeals.
