Case Law Details
Air India Ltd. v. Commissioner of Customs (CESTAT Chennai)
M/s Air India Ltd. (Appellant) was granted custodianship permission for the export of cargo. The Appellant, as a custodian, are duty bound to comply with the provisions of Customs Act, 1962 and allied rules i.e., the Handling of Cargo in Customs Area Regulations, 2009 (HCCAR).
The Commissioner of Customs (Respondent), made a surprise check at the export shed of the Appellant on August 01, 2019, the Appellant had allowed cargo to move in sterile area without checking the status of Custom clearance i.e. without checking whether ‘Let Export Order’ (LEO) given or not.
The Respondent opined that there are shortcomings in the function of the Appellant as custodian like in case of seizure of ‘Star Tortoise’ dated November 07, 2018 and of ‘Red Sander’ dated July 29, 2019.
The Respondent issued a Show Cause Notice (SCN) alleging violation of Rule 5 and Rule 6 of the HCCAR and proposing to revoke the appointment as custodian and imposed penalty of Rs 50,000/- under Regulation 12(8) of the HCCAR on the Appellant.
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