CESTAT rules out the penalty for misquoting of revenue

CESTAT rules out the penalty for misquoting of revenue

The appellant had approached the tribunal against the fine

On a plea filed by the appellant Mov and Go Logistics, against the levy of penalty, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, has ruled that the customs broker/customs house agent cannot be penalized for misquoting of revenue by an exporter under the Customs Act, 1962.

The logistics company had filed the shipping bills online. But, on behalf of the exporter, the customs broker examined that the appellant had furnished an incorrect Rotation Number for the bills at the time of the registration of the goods for customs verification.

In December 2018, show-cause notices were issued to the appellant, proposing a contravention of the provisions of Section 50(3)(a) and levying a penalty under Section 132, read with Section 117, under the Customs Act.

Appearing on behalf of the appellant, advocate G. Derrick Sam filed a detailed response. The adjudicating authority confirmed the proposals made in the show-cause notices.

Thereafter, against the Orders-in-Original, the appellant made an appeal before the First Appellate Authority (FAA). But when the FAA upheld the penalty imposed on the appellant, aggrieved by it, the appellant filed an appeal before the CESTAT.

The Coram of P. Dinesha (member-judicial) allowed the appeal. Mentioning that the contravention was to Section 50(3)(a) of the Customs Act, it set aside the penalty imposed against the customs broker.