The CESTAT, Delhi bench has held that the penalty under the Customs Act, 1962 cannot be imposed on an importer for the mistakes in the bill of entry admittedly committed by the exporter.
The Bill of Entry was assessed and marked for examination by SIIB on first check basis. The goods were initially examined on 28/03/2011 and thereafter the final examination on 04/04/2011. On examination, it was found that there is mismatch with regard to the quantity and also contained branded goods being Nokia Chargers. Some undeclared travel chargers, AC adaptors were also found and penalty was imposed on the importer accordingly.
The Appellant contended that it was their first order through M/s Pama and Company Ltd. UK but, due to some mistake at the end of the exporter/shipper, they also imported some another goods which are not as per the purchase order.
Judicial Member Mr. Anil Chaudhary observed that there is no case of deliberate mis-declaration made out on the part of the Appellant importer.
“The Bill of Entry had been filed as per the packing list and Bill of Lading. Further, the Shipper/Exporter have accepted their mistake, there being error at the time of packing the goods at their end. This cogent explanation has not been found to be untrue. I, further take note that the Appellant had already been suffered financial loss at the end paid for the consignment to the Shipper. In view of my findings, I set aside the penalty imposed under Section 112a of the Act. The Appeal is allowed, the Appellant shall be entitled to consequential benefit, in accordance with law,” the Tribunal said.
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