Srimanta Rakshit Vs Commissioner of Customs (Port) (CESTAT Kolkata)
The CESTAT, Kolkata decided two connected appeals arising from a common Order-in-Appeal which had upheld penalties imposed on a licensed Customs Broker and its G-Card holder under Sections 112(a)(i) and 114AA of the Customs Act, 1962. The penalties were imposed in connection with import consignments allegedly mis-declared to evade customs duty and bypass import restrictions.
The case originated from intelligence inputs that an importer had declared goods as new mining radial tyres, while allegedly concealing a large quantity of tyres of different specifications suitable for cars, buses, and trucks. Two Bills of Entry were filed through the Customs Broker. On 100% examination of the consignments, customs authorities found substantial discrepancies in quantity, description, and quality. Thousands of tyres of miscellaneous international brands were discovered concealed within large mining tyres. The goods were seized, and statements of the importer and the Customs Broker’s G-Card holder were recorded.
A show cause notice was issued proposing penalties on the Customs Broker firm and its G-Card holder under Sections 112(a)(i) and 114AA of the Customs Act. The adjudicating authority imposed substantial penalties on both, which were affirmed by the Commissioner (Appeals). Aggrieved, both appellants approached the Tribunal.
