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2023 (3) TMI 545 - AT - CustomsLevy of penalty on CHA u/s 114 (iii) and Section 114AA respectively of the Customs Act, 1962 - allegation of abatement - fraudulent export of ladies Leather Uppers Shoe for claiming Drawback Incentive Scheme from ICD - mis-declaration of quantity of export goods - HELD THAT:- The exporter has made a serious offence by mis-declaring the quantity i.e. against 30,000 pairs declared in the export document only physical quantity found 405 pairs. Moreover, the value was also shown exorbitantly high. Though the appellant has acted as CHA and it does not appear the direct involvement of the appellant in the fraud of export goods but when against one invoice, the exporter asked the appellant CHA to split the consignment and make 8 shipping Bills, that itself is a reason that the appellant should have acted diligently and inquired about the reason for this abnormal act of splitting the consignment into 8 shipping Bills. He was also supposed to inform this to the Customs authority. The Customs authority also found suspicious because of 8 shipping Bills against one consignment. Therefore, this negligence of the CHA resulted into attempted of fraudulent export by his client. Therefore, the appellant is liable for penalty under Section 114(iii) and Section 114AA. However, looking to the nature of role of the CHA in the entire episode, penalty of Rs. 5,00,000/- in each section is very harsh, therefore, the penalty reduced from 5 lakhs each under Section 114(iii) and Section 114AA to Rs. 2 Lakhs in each section. Appeal allowed in part.
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