Customs Broker / Customs House Agent Cannot be Penalized for Wrong Quoting of Revenue by Exporter: CESTAT [Read Order]

The Customs, Excise And Service Tax Appellate Tribunal, Chennai has held that customs broker/ Customs House Agent cannot be penalized for wrong quoting of revenue by exporter under section 50(3)(a).

The appellant M/s. Mov and Go Logistics has filed appeal against the levy of penalty under Section 132 read with Section 117 of the Customs Act, 1962, for an alleged contravention of Section 50(3)(a).

On examination of the shipping bills filed online by M/s. Mov and Go Logistics, Customs Broker on behalf of the exporters, it is found that the appellant had furnished wrong Rotation number for the shipping bills at the time of registration of the goods for Customs examination; that wrong rotation numbers/EGM were furnished for the shipping bill No. 7260046 and shipping bill No. 7784321 at the time of Customs examination. Based on the above, Show Cause Notices dated 19.12.2018 were issued to the appellant, proposing to consider the same as a contravention of the provisions of Section 50(3)(a) and to levy penalty under Section 132 read with Section 117 for the above contravention

Shri G. Derrick Sam, Learned Advocate for the appellant filed its detailed reply but  however not impressed, the Adjudicating Authority confirmed the proposals made in the Show Cause Notices. Against the said Orders-in-Original, the appellant preferred appeals before the First Appellate Authority, who has upheld the penalty imposed on the appellant. Aggrieved, the appellant has filed the present appeals before CESTAT.

While allowing the appeal the Coram of Hon’ble Mr. P. Dinesha, Member (Judicial) has held that, “The alleged contravention is to Section 50(3)(a) of the Customs Act, 1962, which is extracted herein below for the sake of convenience:

“Section 50: Entry of goods for exportation. —

(1) …

(2) …

(3) The exporter who presents a shipping bill or bill of export under this section shall ensure the following, namely:—

(a) The accuracy and completeness of the information given therein;”

From the very sub-section, it is seen that the same applies to an exporter who presents a shipping bill or bill of export under this Section and hence, a Customs House Agent or a Customs Broker cannot be fastened with the penalty if the Revenue finds any wrong quoting, etc., in the presented shipping bill”. Hence the penalty imposed against the customs broker has been set aside.

To Read the full text of the Order CLICK HERE

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