Order Date – 10 May 2023

Parties: M/S KVS Cargo, HIM Logistics Pvt Ltd Vs Commissioner Customs (Export), New Delhi

Facts – 

• The Appellants, M/S KVS Cargo, HIM Logistics Pvt Ltd, Customs Brokers were alleged to be involved in making fraudulent export of readymade garments with M/s Anand Enterprises.
• On an investigation it was found that M/s Anand Enterprises was not found existing on the declared address
• Penalty under Section 114 and/or 114AA of the Customs Act, 1962 was imposed on both the appellants.

Issue – 

• Whether the imposition of penalty under Section 114 of the Customs Act, 1962 is in order?

Order – 

• The Tribunal observed that the allegations of forging the documents is solely on Anand Sharma and no connivance of the appellant in that regard has been pointed out by the Department. The statement of Shri Bal Kishan Bhalla Chief Manager, Punjab National Bank specifically verified and confirmed the documents produced in original.
• If the Bank officials despite verification are not able to detect the fraudulent nature of the documents, how can one expect from CHA who is not even a public official to unearth the dubious plan of the exporter. Hence no penalty can be imposed on M/s KVS Cargo and, therefore, the impugned order is set aside.
• M/s Him Logistics was merely a facilitator in forwarding Anand Sharma to KVS Cargo, hence they cannot be roped in for any violation of the provisions of CBLR and therefore the penalty imposed on M/s Him Logistics by the impugned order is untenable.
• Both the appeals are allowed.