S.Y. RANADE Vs. COMMISSIONER OF CUSTOM

JUDGEMENT

(1.) IN this appeal, a CHA challenges the penalty (Rs. 20,000/ -) imposed on him under Section 112 of the Customs Act by the Commissioner of Customs. His client, who imported certain goods and appointed him as CHA, was found to have misdeclared the description and value of the goods in the relevant bill of entry. It appears, the importer approached the Settlement Commission in relation to the proposals made against them in the show -cause notice. I am told that the matter was settled by the Settlement Commission in so far as the importer was concerned. Show -cause notice proceedings were resumed against the CHA and eventually the Commissioner has imposed the above penalty on him.

(2.) IN the present appeal, the CHA objects to the rule of vicarious liability being applied to him. He also questions the manner in which the ld. Commissioner interpreted the provisions of Section 147 of the Customs Act. Today, the ld. Counsel for the appellant has made an endeavour to enlarge the scope of some of the grounds raised by the appellant, by referring to the provisions of Section 147 as also to a judgment of this Tribunal viz. Aspinwall & Co. v. CCE Trichy : 2001 (132) ELT 644 (Tri -Chennai). The ld. JCDR has argued in defence of the Commissioner's order.

(3.) THE rights and liabilities of a Customs House Agent have been laid down under the Customs House Agents Licensing Regulations 2004. According to those regulations, a CHA shall carry out the instructions of his client (importer/exporter) who has authorised him to clear goods for home consumption/warehousing or for export, as the case may be. Where an importer instructs his CHA to make certain entries in his bill of entry, the department cannot frame a case of misdeclaration (or abetment thereof) against the CHA so as to penalise him though such case can be made out against his client (importer). In other words, CHA's case would not come within the parameters of Section 147 of the Customs Act. Had it been the intention of the legislature to include CHAs also in the category of agents mentioned in the text of Section 147, there would have been a reference to Section 147 under the Customs House Agents Licensing Regulations.