TMI Blog2015 (1) TMI 209X X X X Extracts X X X X X X X X Extracts X X X X ..... tion given by clients would be sustainable in law for imposing penalty on CHA - Held that:- Even at the very outset, it is evident from the order of the Tribunal that the goods were examined by the Customs Department in its laboratory, and analysis revealed that the goods were common salt instead of Organic Dye Intermediate G-Salt, as declared. Such being the case, this Court is baffled to note how penalty can be levied on the CHA. When the Department itself, only on the basis of the chemical analysis, was able to ascertain that the goods attempted to be exported was not common salt, how can a CHA be expected to know of the exact nature of the product at sight. In the above stated scenario, this Court has no hesitation to hold that the Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (212) ELT 178 (Del.) has justified the imposition of penalty on the CHA and held that the CHA is duty bound to exercise due diligence to ascertain the correct of information given by clients would be sustainable in law for imposing penalty on CHA? 2. The facts of the present case disclose that the Custom House Agent (for short 'CHA') has been mulcted with penalty of ₹ 1,50,000/- (Rupees One Lakh Fifty Thousand only) in a case of mis-declaration by the exporter, who attempted to export ordinary salt under the guise of 'Organic Dye Intermediate G-Salt' for the purpose of claiming drawback benefits for a declared value of ₹ 64 Lakhs. 3. The brief facts of the case is that the goods, on the threshold of export ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , it is evident from the order of the Tribunal that the goods were examined by the Customs Department in its laboratory, and analysis revealed that the goods were common salt instead of Organic Dye Intermediate G-Salt, as declared. Such being the case, this Court is baffled to note how penalty can be levied on the CHA. When the Department itself, only on the basis of the chemical analysis, was able to ascertain that the goods attempted to be exported was not common salt, how can a CHA be expected to know of the exact nature of the product at sight. In the above stated scenario, this Court has no hesitation to hold that the Commissioner (Appeals) and the Tribunal's reasoning for setting aside the penalty imposed on the CHA is fully justi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
