2025 (1) TMI 1326 - AT - Customs

Levy of penalties u/s 112 (a) and 114AA of the Customs Act 1962 - Delivery Agents - Allegation that appellants have aided and abetted the smuggling of cigarettes - HELD THAT - The appellants are only a Delivery Agent of the Principal and acted in a proper manner and ensured that the FCL and sealed container landed properly at Haldia with its seal intact. The FCL sealed container was carried from Jebel Ali to Haldia and this being a FCL sealed container. Therefore as the Delivery Agents were not aware of the contents inside the container or what was carried inside the container and as a reason of which the Bill of Lading of this consignment/container was clause Particulars of goods as declared by Shipper-Carrier not responsible /Shipper s Load Stow Count Seal Weight Said to contain . It was only at the time of opening of the container. It came to the knowledge of the appellant that these containers are carrying cigarettes. Conclusion - The fact that being the appellants were not known the contents inside the container and they are only Delivery Agent in that circumstances the provisions of Section 112 (a) of the Customs Act 1962 is not applicable on the appellants. The appellants have no knowledge and the appellants have not aided and abetted the smuggling of cigarettes in that circumstances no penalty is imposable on the appellants. Appeal disposed off.

Summary

ISSUES PRESENTED and CONSIDERED

The core legal issues considered by the Tribunal were:

• Whether the appellants, acting as Delivery Agents, were liable for penalties under Sections 112(a) and 114AA of the Customs Act, 1962, for allegedly aiding and abetting the smuggling of cigarettes.
• Whether the appellants had knowledge of the contents inside the sealed container and if their actions constituted aiding and abetting smuggling activities.

ISSUE-WISE DETAILED ANALYSIS

Issue 1: Liability under Sections 112(a) and 114AA of the Customs Act, 1962

• Relevant Legal Framework and Precedents: Section 112(a) of the Customs Act, 1962, pertains to penalties for improper importation of goods, including aiding and abetting such activities. Section 114AA deals with penalties for use of false and incorrect material.
• Court's Interpretation and Reasoning: The Tribunal interpreted these provisions in the context of the appellants' role as Delivery Agents. It emphasized that the appellants were responsible for ensuring the delivery of the container with its seal intact and were not involved in the packing or declaration of the goods inside.
• Key Evidence and Findings: The Tribunal noted the intact seal on the container and the appellants' role limited to acting on behalf of the shipping company as Delivery Agents. The Bill of Lading contained a clause indicating that the particulars of goods were as declared by the shipper, and the carrier was not responsible for the contents.
• Application of Law to Facts: The Tribunal applied the legal provisions to the facts and concluded that the appellants did not have knowledge of the contents within the container, which negated the applicability of Section 112(a) concerning aiding and abetting smuggling.
• Treatment of Competing Arguments: The Tribunal considered the argument from the adjudicating authority that the appellants' actions amounted to aiding and abetting smuggling. However, it found this unsubstantiated due to the lack of evidence showing the appellants' knowledge or involvement in the smuggling activity.
• Conclusions: The Tribunal concluded that the appellants, as Delivery Agents, did not aid or abet the smuggling of cigarettes and thus were not liable for penalties under Sections 112(a) and 114AA of the Customs Act, 1962.

SIGNIFICANT HOLDINGS

• Core Principles Established: The Tribunal established that mere possession or handling of goods in a sealed container, without knowledge of its illicit contents, does not constitute aiding and abetting smuggling under the Customs Act. The role and responsibilities of Delivery Agents were clarified, emphasizing the importance of knowledge and intent in determining liability.
• Final Determinations on Each Issue: The Tribunal set aside the penalties imposed on the appellants, determining that they acted within their scope as Delivery Agents without knowledge of the smuggled goods.

The Tribunal's decision underscores the necessity of proving knowledge and intent in cases involving allegations of aiding and abetting smuggling activities, particularly for parties acting in intermediary roles such as Delivery Agents.