Case Law Details
United Customs House Agency (P) Ltd Vs Commissioner of Customs (Prev.) (CESTAT Kolkata)
Introduction: In a recent legal case before the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) Kolkata, the question of whether a Customs House Agent (CHA) can be penalized for their alleged involvement in overvaluation during an export came to the forefront. The case involved M/s United Custom House Agency (P) Ltd and Shri Prakash Ghosh, Proprietor of M/s Overseas Shipping Agency, who faced penalties for their roles in an improper export.
Detailed Analysis: The facts of the case revolve around an exporter, M/s Mahabir Metal, who had two consignments of steel-made kitchen tableware for export to Bangladesh. The investigation into this case was initiated on the grounds that the exporter had resorted to overvaluation to claim excess drawback benefits. A Show Cause Notice was issued to the exporter along with both the appellants (CHA and Shri Prakash Ghosh) as co-noticees.
The case was adjudicated by the Commissioner of Customs, and a penalty of Rs. 10,00,000 was imposed on both appellants under Section 114(iii) of the Customs Act, 1962, for abetting the improper export. In response to the penalty, both the appellants filed appeals before CESTAT Kolkata.
The CHA, M/s United Custom House Agency (P) Ltd, argued that their role was limited to filing the necessary documents, which were provided by the exporter. They emphasized that there were no allegations in the impugned order suggesting that they had committed any irregularities in the documents they filed. When the seized consignments were examined, they matched the invoices and other documents. Therefore, the CHA asserted that they could not be held responsible for any overvaluation carried out by the exporter to claim excess drawback.
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