Planet World Cargo Vs Commissioner of Customs Export (CESTAT Delhi)
M/s. Planet World Cargo filed an appeal before the CESTAT Delhi challenging the order dated 15.11.2022 of the Commissioner of Customs (Appeals), New Delhi. The Commissioner had upheld the penalty of ₹10 lakh imposed by the Joint Commissioner under Section 114(iii) of the Customs Act, 1962, for filing unauthorized and mis-declared Shipping Bills. The appeal was dismissed, and the penalty confirmed.
The issue arose from three Shipping Bills dated 21.2.2019 filed in the name of M/s. KKS Export and Import for the export of ‘Self Adhesive Vinyl Sheets.’ The Directorate General of Revenue Intelligence (DRI) received intelligence indicating mis-declaration of these goods. Examination revealed that the goods were of very poor quality, not as valued in the Shipping Bills, and some did not contain vinyl at all. The goods were sent to the Central Revenue Control Laboratory for testing, which reported that one sample was fluorescent paper, another polyethylene film, and the remaining samples, though self-adhesive, were not vinyl sheets.
Further investigation showed that the Shipping Bills had been filed by Planet World Cargo at the behest of Shri Mohd. Najib Abdulsattar Memon without any request or authorization from KKS, the purported exporter. KKS did not respond to the Show Cause Notice (SCN) and did not make any representation. Consequently, the Additional Commissioner confiscated the goods and allowed their redemption upon payment of a fine. No penalty was imposed on KKS, but penalties were imposed on Planet World Cargo, Najib, and Shri Sumit Tandon.
