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2023 (8) TMI 1246 - AT - CustomsLevy of penalty on CHA u/s 114(i) and 114AA of the Customs Act, 1962 - acts of omission and commission in relation to the attempted illegal export of Red Sanders - prohibited goods or not - HELD THAT:- It is on record that the appellant filed the impugned shipping bill without knowing and verifying the credentials of the exporter or the consignment - appellant, by accepting documents from a third party without verifying the genuineness of the exporter or the goods being exported, has facilitated the unsuccessful attempt of export of prohibited goods. Whether the above acts or omissions have been done intentionally or otherwise would not materially alter his position as an abettor in rendering these goods liable for confiscation. It is not correct position of law to say that penalty cannot be imposed under the provisions of Section 114 of the Customs Act when penalties are imposed / imposable for contravention of the Custom House Agents Licensing Regulations (CHALR). For contravention of the CHALR, the licence of the CHA may be suspended or revoked apart from forfeiture of the security deposit. However, it does not mean that penalty is not imposable under Section 114 of the Customs Act where the CHA has abetted or facilitated an illegal export or import contravening various provisions of the Customs Act, 1962. The Hon’ble High Court of Judicature at Madras in the case of M/S. SANCO TRANS LTD VERSUS THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL, THE COMMISSIONER OF CUSTOMS (SEAPORT-EXPORT) [2017 (4) TMI 583 - MADRAS HIGH COURT] has held that the custodian is responsible for all aspects of a transaction and provisions of Section 114 of the Customs Act, 1962 will stand automatically attracted in the event of violations by way of omission or commission of acts stated therein. The appellant has acted or omitted to do an act, resulting in rendering the exported goods liable for confiscation, thus attracting the provisions of Section 114 (i) of the Customs Act, 1962. So, penalty is imposable for his acts of omission or commission, may be deliberate or negligent. His conduct aided and facilitated the illegal attempted export of Red Sanders wood pillars and tops. The penalty upheld at Rs.1,00,000/- is reduced to Rs.50,000/- - Appeal allowed in part.
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