Penalty u/s 114 of Customs Act not leviable on CHA for non-assurance of correct classification of goods

Chakiat Agencies Vs Commissioner of Customs (Exports) (CESTAT Chennai)

CESTAT Chennai held that Custom House Agent (CHA) cannot be expected to examine and ensure the nature of the goods in the consignment. Accordingly, penalty u/s 114 of the Customs Act cannot be levied on CHA alleging that they didn’t ensure correct classification of the goods.

Facts- Based on the intelligence that “Muriate of Potash”, a restricted item for export, is smuggled out of India in the guise of “Industrial Salt”,

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