Order Date – 01 September 2023

Parties: M/s. National Agency Vs Commissioner of Customs (Port), Kolkata

Facts – 

• The Appellant, M/s. National Agency, a customs agent was found to be involved in exporting Red Sanders Wood for Royal Chimney and the petitioner was imposed with a penalty of Rs. 50,000/- under Section 114(i) of the Customs Act, 1962.
• It was contented that they received instructions to file the documents from a Freight Forwarder on behalf of the exporter for exporting 1050 boxes of Glass Chimneys but later on as advised by the exporter that only 700 boxes could be loaded, the invoice and packing list were changed and a fresh shipping bill was filed.
• It was also contented that they never met with the middleman or the exporter or the truck driver.

Issue – 

• Whether the CHA is liable to pay penalty?

Order – 

• The Tribunal observed that they did not take any steps to verify the genuineness of the exporting firm by visiting the office premises or even talking to any responsible person. Further, being a CHA it is all the more prime responsibility of the appellant that they ensure that the said middlemen had introduced them to the rightful person and not merely shoot in dark for certain business interests.
• The appellant cannot however escape of their responsibility and the special burden cast on them as a CHA, besides being certainly guilty of carelessness, negligence and omissions and commissions that have facilitated the entry of the offending goods (red sander wood logs) into the port area, for purpose of export to a third country.
• Thus, the appellant has rendered himself liable to penal consequences. As the Show Cause Notice fails to bring to fore any express and active collusion in the attempted exports of Red Sander Wood logs on the part of the appellants and but for our findings supra, noting the various acts of omissions and commissions on the part of the appellants, the imposition of a penalty of Rs. 50,000/- under Section 114(i) of the Customs Act, 1962 would meet the ends of justice.
• The appeal is disposed of.