Case Law Details
Commissioner of Customs Vs B. Dhananjayan (CESTAT Chennai)
For violation of Customs Brokers Licensing Regulations the agent is not an inspector, but rather a processing agent of documents with respect to clearance of goods through Customs House; that the mentioning of IE Code of the exporter in the shipping bill would itself reflect that before the grant of such IE Code, a background check of the importer / exporter had been undertaken by the Customs Authorities and therefore, there could be no scope to doubt the identity of the exporter. Further, it was observed by the Hon’ble High Court that when such Code was mentioned, there was a presumption that an appropriate background check would have been done by the Customs Authorities; there was nothing on record to show that the appellant therein had knowledge that the goods mentioned in the shipping bills did not reflect the truth of the consignment sought to be exported and in the absence of such knowledge, there cannot be any mens rea attributed to the appellant or its proprietor.
Revenue has not made any attempt to attribute the prior knowledge as to the involvement of the assessee-respondent right from the beginning in the alleged illegal import of red sanders. Further, the Revenue has also not established as to which act or omission on the part of the assessee-respondent herein that rendered the goods in question liable for confiscation, because such act or omission would have to be a deliberate act or omission.
In view of the above discussion on the facts of this case, coupled with the ratio of the decision of the Hon’ble Delhi High Court (supra), I am of the view that the Revenue has not established its case as regards penalty under Sections 114 and 114AA of the Customs Act, 1962 against the Customs Broker-respondent herein and hence, I do not see any reasons to interfere with the findings of the First Appellate Authority.
FULL TEXT OF THE CESTAT CHENNAI ORDER
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