Order Date – 08 February 2023

Parties: M/s. Chakiat Agencies and Shri Soji Kuriakose Vs Commissioner of Customs (Exports)

Facts –

• The Appellants, M/s. Chakiat Agencies and Shri Soji Kuriakose found to be involved in export of “Muriate of Potash”, a restricted item for export by mis declaring it as Industrial Salt.
• Show cause notices were issued to including M/s.Chakiat Agencies, who is the CHA, and Shri Soji Kuriakose who is the Manager(Exports) of the CHA firm. Imposed penalty of Rs.1,00,000/- each on the appellants.

Issue –

• Whether the penalty imposed is in order?

Order – 

• The Tribunal held that the goods were declared as “Industrial Salt” on the basis of the documents and test reports furnished by the exporter. The appellant as a CHA cannot be expected to examine and ensure the nature of the goods in the consignment. 
• There is no allegation or evidence to establish that the appellant had indulged in any overt act or played any role in any manner so to assist the exporter in his attempt to export the goods. The issue of classification is of complex nature.
• Hence it was held that the penalty imposed on the appellants under Section 114 of the Customs Act is not warranted. The appeal is allowed.

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