The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai bench has held that the corrigendum to original order can only correct typo errors and the same cannot be issued to confiscate goods.
On receiving specific intelligence, a special team of Chennai – III Commissionerate conducted search at the Kasimedu Fishing Yard garbage area and recovered two white color thermocol boxes with markings showing airway bill numbers. These boxes were examined and found to contain 490 numbers of Star Tortoises. Investigation revealed that the said consignment was filed vide Shipping Bill dated 5.11.2018 by declaring the goods as ‘Live Mud Crabs’. The shipping bill was filed by Customs Broker M/s. AKR Logistics India Pvt. Ltd. who is the appellant herein. Shri P. Thirumoorthy is the proprietor of the said firm. The exporters’ name was shown as M/s. Daily Fresh Exports and Imports, Nagapattinam and the goods were destined for Malaysia.
The appellant contended that the original Show Cause Notice has not made any proposal to confiscate the subject goods. The original authority has passed a Corrigendum after passing the Order in Original and has thus later ordered for confiscation of the goods by issuing a corrigendum.
Ms. Sulekha Beevi C.S., Member (Judicial) allowed the arguments of the appellants and observed that “on perusal of the Show Cause Notice, it is vaguely stated in para 20 that the goods are liable for confiscation. However, from para 35 onwards, there is no proposal to confiscate the goods. This is a serious error in the Show Cause Notice as without proposing to confiscate the goods, the penalty under sec. 114(i) of the Customs Act, 1962 is not sustainable. The original authority has tried to correct the error by issuing a Corrigendum to the Order in Original. In fact, the Order in Original No. 1150/2020 is passed on 17.11.2020.”
Quashing the penalty order, the CESTAT held that “a Corrigendum to an Order in Original can be issued only for correcting typographical errors. A corrigendum cannot be used to cover up the main part or main issue that has to be adjudicated. The said Corrigendum cannot be accepted in the eye of law.”
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