Customs Section 114AA Penalty Requires Proof of Knowledge & Intent to aid Undue Advantage

Evergreen Shippng Agency India Pvt Ltd. Vs Commissioner of Customs (Export) (CESTAT Delhi) Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Delhi, has set aside penalties totaling Rs. 20 lakhs imposed on Evergreen Shipping Agency India Private Limited, a shipping line, by the Commissioner of Customs. The Tribunal’s ruling underscores that for penalties to be imposed under Sections 114(iii) and 114AA of the Customs Act, 1962, the element of “knowledge and intention” on the part of the penalized entity must be clearly established. The dispute centered on an alleged...