Case Law Details
Hera Shipping Solutions Pvt. Ltd Vs Commissioner of Customs (CESTAT Chennai)
In order to attract section 114 of the Customs Act, 1962, the department has to establish some act or omission by which the appellant has abetted the offence.
Brief facts are that the Directorate of Revenue Intelligence, Chennai Zonal Unit gathered specific intelligence that attempts were made to smuggle red sanders from Chennai Port in consignment covered under Shipping Bill dated 2.5.2018 in the name of M/s. Universal Concrete Technology. The said bill was filed by the Customs Broker, the appellant herein. Pursuant to the intelligence on 9.5.2018, the container was off loaded from vessel for verification. The officers found the container to be stuffed with red colour wooden logs which were red sanders. During the course of investigation, it was revealed that an unknown person introduced himself as Shri Rajesh to Shri Mahimai David and impersonated himself as Shri Sampath Kumar, Proprietor of M/s. Universal Concrete Technology, Coimbatore. Shri Mahimai David who was Sales Manager of M/s. New Idea Logistics received the documents including KYC and self-declaration form. M/s. New Idea Logistics did not obtain authorization directly from the exporter. M/s. New Idea Logistics arranged the Customs Broker viz. M/s. Hera Shipping Solutions (the appellant herein) for providing clearance services. The appellant attended to the clearance work of M/s. Universal Concrete Technology (Exporter) on behalf of M/s. New Idea Logistics Pvt. Ltd. had not verified the authenticity of the client and thus contravened Regulation 11(a), 11(d) and 11(n) of CBLR, 2013. Statements were recorded and documents were collected. Show Cause Notice was issued to Shri Mahimai David as well as the appellant herein and others under sec. 124 of the Customs Act, 1962 proposing inter alia to impose penalties.
After due process of law, the adjudicating authority vide Order in Original dated 29.4.2019 ordered for confiscation of the red sander logs and imposed penalty of Rs.75 lakhs on Shri Mahimai David under sec. 114 of the Customs Act, 1962. A further penalty of Rs.75 lakhs was imposed under sec. 114AA of the Customs Act, 1962. The penalties proposed against the appellant herein under section 114, as well as, Section 114AA were dropped.
Against such order of non-imposition of penalty upon the appellant herein, the department filed appeal before Commissioner (Appeals). The matter was remanded by Commissioner (Appeals) vide impugned order to the adjudicating authority to reconsider the issue of non-imposition of penalties under sec. 114 and 114AA on the appellant. Aggrieved by such direction of remand, the appellant is before the Tribunal.
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