CESTAT quashes Penalty imposed on CHA for Improper Export of Steel made Kitchen Tableware on ground of Non-violation of CHA Regulations [Read Order]

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) quashed the penalty imposed on Customs House Agent (CHA) for improper export of steel-made kitchen tableware on the ground of non-violation of Customs House Agent Regulations (CHA),2004. 

United Customs House Agency (Private) Ltd, the appellant assessee the exporter Mahabir Metal had placed two consignments of steel Kitchen Tableware for export to Bangladesh and the assessee had the role of only filing the documents and filing the documents before customs authorities as provided by the exporter. 

The assessee appealed against the order passed by the Commissioner of Customs for imposing a penalty of Rs. 10.00,000/-each on the Customs House Agent on the allegation of improper export of goods. 

H. K. Pandey, the counsel for the assessee contended that the assessee cannot be held responsible for over invoicing if any, done by the exporter to get excess drawback. 

Also submitted that there was no allegation in the impugned order that they had violated any of the provisions of the CHA Regulations. 

Tariq Suliaman, the counsel for the department relied on the decisions made by the lower authorities and contended that the penalty imposed by the revenue was as per the law and liable to be sustained. 

The Bench observed that the assessee acted as CHA and Clearing and forwarding agents in the export consignments and their role was restricted to filing of the documents. 

The two-member bench comprising Muralidhar (Judicial) and Jyothishi (Technical) quashed the penalty imposed on the assessee while allowing the appeal filed by the assessee. 

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