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2015 (1) TMI 209 - HC - CustomsImposition of penalty - Whether the Tribunal's decision was justified in setting aside the penalty imposed on the first respondent by the adjudicating authority under Section 114 (iii) of Customs Act, 1962, without considering the adverse observations made in the Order in Original dated 30.03.2006 on the CHA be correct in law, when the High Court of Delhi in the case of M/s.Satish Gupta Vs Union of India reported in [2007 (1) TMI 29 - HIGH COURT ,DELHI] has justified the imposition of penalty on the CHA and held that the CHA is duty bound to exercise due diligence to ascertain the correct of information given by clients would be sustainable in law for imposing penalty on CHA - Held that:- Even at the very outset, it is evident from the order of the Tribunal that the goods were examined by the Customs Department in its laboratory, and analysis revealed that the goods were common salt instead of Organic Dye Intermediate G-Salt, as declared. Such being the case, this Court is baffled to note how penalty can be levied on the CHA. When the Department itself, only on the basis of the chemical analysis, was able to ascertain that the goods attempted to be exported was not common salt, how can a CHA be expected to know of the exact nature of the product at sight. In the above stated scenario, this Court has no hesitation to hold that the Commissioner (Appeals) and the Tribunal's reasoning for setting aside the penalty imposed on the CHA is fully justified. - Further, the case of Satish Gupta (2007 (1) TMI 29 - HIGH COURT ,DELHI) relied on by the learned counsel for the appellant, does not apply to the facts of the present case. That is a case in which there is a clear finding that the CHA had knowledge and was aware of the nature of goods. In the present case, we find that the CHA does not bear knowledge about the nature of goods and there is no material to infer so. - Decided against Revenue.
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