The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai Bench confirmed the order by Commissioner of Income Tax (CIT) of reduced penalty from Rupees 2 lakhs to fifty thousand as there was no intentional action of export without Let Export Order.
Confirmation of penalty of Rs.50,000/- to the appellant, M/s Meghna Clearing and Forwarding P. Ltd at the reduced rate by the Commissioner (Appeals) that was imposed for Rs.2,00,000/- on the Appellant under Section 114(iii) of the Customs Act, 1962 is the issue in this appeal.
Two manual shipping bills dated 23.07.2015 and 24.07.2015 were filed by the Appellant as CHA for M/s. Mesto India Pvt. Ltd. at SEZ, Panvel through M/s. DHL Logistics Pvt. Ltd., an authorised Appellant as C & F Agency engaged to complete the formalities and clearance at Mumbai. Ground Handling Agency (GHA) M/s. Cambata Aviation Pvt. Ltd. handled the same for export but it did so without the examination and endorsement of the EFO and without Let Export Order from the proper Officer of Customs.
Matter was referred to SIIB (Export), Mumbai for further investigation that resulted in holding the goods liable for confiscation under Section 113(g) of the Customs Act with imposition of penalty on Appellant CHA and the GHA by the adjudicating authority namely Assistant Commissioner of Customs (Export), Mumbai. In the appeal filed by the Appellant before the Commissioner of Customs (Appeals), Mumbai, imposition of penalty was confirmed under Section 114(iii) of the Customs Act but it was reduced from Rs.2,00,000/- to Rs.50,000/- on the ground that no intentional action was forthcoming on the part of Appellant in such an act of export without Let Export Order.
The Counsel for the appellant, A.K. Prabhakar argued that there was a clear finding by the Commissioner (Appeals) that the GHA namely M/s. Cambata Aviation Pvt. Ltd. faulted in their responsibility to ensure that the documents were cleared by the Customs before removal of goods and Appellant’s only fault was that it had not informed the Customs Authorities and it failed to stop loading of the consignment even after informing the GHA.
A Coram consisting of Dr Suvendu Kumar Pati, Judicial Member observed that “The appeal is dismissed and the order passed by the Commissioner of Customs (Appeals), Mumbai, imposing penalty under Section 114(1) of the Customs Act for Rs.50,000/- on the Appellant CHA is hereby confirmed.”
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