COMMISSIONER OF CUSTOMS Vs. SEAMASTER SHIPPING AND LOGISTICS

JUDGEMENT

(1.) THE Revenue is aggrieved with the dropping of proceedings against the Steamer Agent in terms of Section 112(a) of the Customs Act, 1962. The findings recorded by the Commissioner in Order -in -Original is reproduced herein below. I have gone through the records of the case and carefully considered the different submissions written as well as oral, advanced by on behalf of all the notices. The main allegation in the show cause notice are:

(2.) THE next question to be examined is whether M/s. Seaways Shipping Ltd. are liable for penalty under Section 112(a) of the Customs Act, 1962, The CHA did not file any Bill of Entry to facilitate clearance of the goods, although it was alleged in the Show Cause Notice that M/s. Seaways Shipping Ltd. was contacted by representative of Importers and authorised them to act as CHA on their behalf for the clearance of the subject goods. M/s. Seaways Shipping did not approach customs with a request for any facility nor they filed the Bill of Entry for clearance of the goods. Mere authorisation letter cannot be a valid ground for taking punitive action against the CHA as his role in the fraudulent action is not evidenced in the normal circumstances the CHA is expected to verify the bonafides and credibility of the Importer before undertaking to act on his behalf. Although M/s. Seaways Shipping Ltd. did accept authorisation from M/s. Alpha Traders, he did not file any document or acted in any manner on behalf of Importer. Their involvement in the fraudulent action of misdeclaration of goods etc. cannot be established.

(3.) IT is alleged that the role of the CHA/Steamer Agent is ancillary or corroborative to the act of misdeclaration done by the Importer. Section 127 of the Customs Act, 1962 onvisages any importer, exporter or any other person makes an application inter -alia containing a full and true disclosure of his duty liability which has not been disposed before the proper officer, the manner in which such liability has been incurved, the additional amount of Customs duty accepted to be payable by him and such other particulars as may be specified etc. A careful understanding of the above provisions reveals that the mandatory condition of the guiding factor for an individual to approach Settlement Commission in with respect to settlement of duty due and other aspect like penalty, fine etc. In the instant case as the co -noticecs to the Show Cause Notice being CHAs against whom no duty liability is pending and since the case was pending adjudication quantum of fine / penalty applicable were not decided. They are not covered under Settlement Commission.