Three Aces Global Logistics Pvt. Ltd. Vs Principal Commissioner of Customs (CESTAT Delhi)
In Three Aces Global Logistics Pvt. Ltd. Vs Principal Commissioner of Customs, the CESTAT Delhi examined whether penalty under Section 112(a)(ii) of the Customs Act, 1962 could be imposed on a Customs House Agent in a case involving alleged misclassification of imported goods. The appellant had filed Bills of Entry on behalf of M/s Vanesa Cosmetics Pvt. Ltd. for imports of “Actuator, Valve, Pocket spray Bottle” used for scent spray and similar toilet sprays during 2017-2020 at ICD Tughlakabad and Air Cargo, New Delhi. Following an investigation by the Directorate of Revenue Intelligence regarding alleged misclassification, a show cause notice was issued to both the importer and the appellant. The Principal Commissioner confirmed the demand of differential customs duty against the importer and imposed penalty on the appellant under Section 112(a)(ii) on the ground of suppression of facts and wilful misstatement.
Before the Tribunal, the appellant argued that classification disputes involve matters of opinion and that earlier Bills of Entry had been physically examined and cleared by Customs authorities on the basis of the classification declared by the importer. It was also submitted that the appellant acted only on the declarations and documents provided by the importer and there was no evidence of connivance in any alleged improper import.
