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2019 (11) TMI 734 - AT - CustomsLevy of penalty on CHA - Prohibited goods - The case of the revenue is that, the CHA firm namely M/s R.U. Imports-Exports Pvt. Ltd. has played a crucial role in violation of the provision of the Foods Safety & Standards Act, 2006 as well as violation of provisions of the Customs Act, 1962, however, the Adjudicating Authority has failed to impose penalty on the respondent CHA firm and, therefore, the Adjudicating Authority has erred in not imposing penalty under Section 112A on the CHA firm namely M/s R.U. Imports-Exports Pvt. Ltd. HELD THAT:- There is no doubt that the import consignment was of the prohibited goods as same was not found fit for human consumption. The statement of various persons including the Director of the CHA firm reveals that the Director of the CHA firm was aware that the present import consignment as well as the consignment, which have been cleared previously were not meeting with the legal requirement of the FSS Act, 2006 and thereby the same had been imported and cleared in violation of the provision of the Customs Act, 1962 - the Adjudicating Authority under para 28.3 of the order-in-original has categorically mentioned that the CHA firm is responsible for filing the documents for clearance of goods from the customs and the firm has failed to ensure compliance of the provisions of Food Safety & Standards Act, 2006 as well as the provision of the Customs Act, 1962, still the Adjudicating Authority did not impose any penalty under Section 112A of the Customs Act, 1962. CHA firm being independent legal entity and responsible for ensuring compliance of the customs provisions. The CHA firm has been provided with a CHA license as per the provisions of the Customs Broker Regulations CBLR which mandate them to ensure compliance of provisions of the Customs Act and since they have failed in their duty and such act have rendered the subject consignment liable for confiscation as per provisions of Section 111 (d) of the Customs Act, 1962, a penalty under Section 112 (a) of Customs Act is required to be imposed. The Adjudicating Authority after providing an opportunity hearing to the respondent CHA firm will adjudicate the matter afresh only with regard to issue of the imposition of the penalty under Section 112A of the Customs Act, 1962 - Appeal allowed with the way of remand to the original Adjudicating Authority.
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