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2019 (9) TMI 1220 - AT - CustomsImposition of penalty on Customs Broker - Valuation of imported goods - import of heavy melting scrap on high sea sale basis - It was alleged against the appellant that they had not obtained any authorization or document from M/s. V.V. Iron & Steel Company Ltd. on behalf of whom they have filed Bill of Entry - imposition of penalty - HELD THAT:- The appellant has filed the Bill of Entry of M/s. V.V. Iron & Steel Company Ltd. The high seas sales between MM Traders and the client of the appellant is a DDP transaction. As per such nature of transaction, the seller bears cost, risk and responsibility for the cleared goods. The seller is thus responsible for import, clearance, duties and taxes that have to be paid. It is therefore the responsibility of MM Traders. Further in the Show Cause Notice, the allegation is that the appellant has not obtained document from M/s. V.V. Iron & Steel Company Ltd. There is no allegation that the appellant has knowingly and intentionally abetted any misdeclaration of goods. The authorities below, though have come to the conclusion that the appellant has abetted making false declaration in the Bill of Entry, there is no iota of evidence furnished by the department to support this conclusion. Imposition of penalty - HELD THAT:- There is nothing to establish or prove that the appellant has knowingly or intentionally abetted to make false declaration in the Bill of Entry - the penalty imposed under section 112(a) of the Customs Act, 1962 cannot sustain. The penalty imposed u/s 114AA would be attracted only if the person knowingly or intentionally makes, signs or uses, or causes to be made, signed or used, any declaration, statement or document which is false or incorrect. In the present case, the appellant has not abetted in mis-declaration of the goods, the penalty imposed under section 114AA of the Customs Act, 1962 also cannot sustain. The impugned order is set aside insofar as the penalties imposed under section 112(a) and 114AA of the Customs Act, 1962 on the appellant - Appeal allowed.
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