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S. No. Nature of Shipment Section Citation

1. The document discusses two cases related to export shipments involving customs penalties. 2. In the first case, customs clearing agents were penalized for importing HDPE without verifying the bona fides of the importer. However, the court found no direct evidence of the agents' involvement and set aside the penalties. 3. In the second case, an appellant was penalized for exporting nightgowns without properly verifying documents from the exporter. However, the court found this was not sufficient to prove the appellant had knowledge of fraud, so it set aside the penalty.

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Faraz Siddiqui
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42 views3 pages

S. No. Nature of Shipment Section Citation

1. The document discusses two cases related to export shipments involving customs penalties. 2. In the first case, customs clearing agents were penalized for importing HDPE without verifying the bona fides of the importer. However, the court found no direct evidence of the agents' involvement and set aside the penalties. 3. In the second case, an appellant was penalized for exporting nightgowns without properly verifying documents from the exporter. However, the court found this was not sufficient to prove the appellant had knowledge of fraud, so it set aside the penalty.

Uploaded by

Faraz Siddiqui
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as XLSX, PDF, TXT or read online on Scribd
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S. No.

CITATION NATURE OF SHIPMENT SECTION


1 Jha Shipping Agency •Section 113(d) of the
Vs. Commissioner of Customs Act, 1962.
Customs (Port)
MANU/CK/0238/2000
Equivalent Citation:
2002(145)ELT83(Tri. - Export Shipment
Kolkata)

2 Revannath Gabaji •Section 114(iii) of the


Gawade Vs. Customs Act,1962
•Section 113(d) of the
Respondent: Customs Act, 1962
Commissioner of
Customs (E.P.) Export Shipment
MANU/CM/8103/200
7
SUBJECT GOODS IN ISSUE
•Due Diligence
•KYC
•Fictious Firm
•Penalty

High-density polyethylene (HDPE)

•Vicarious Liability
•Fraud
•Undervaluation
•Confiscation
•Due Diligence
Night Gowns
OBSERVATIONS
. I find that the adjudicating authority has presumed the involvement of the appellants in the
importation of HDPE on the sole ground that they have not taken enough precautions to verify
the bona fides of the importer. However, there is no direct evidence on record to show the
involvement of the said two appellants who were merely acting as customs clearing agents on
behalf of their customers, who approached them for their services. In the absence of any
evidence showing the involvement of the appellant, I do not find imposition of penalties upon
them as justified. Accordingly, both the appeals are allowed and the impugned order is modified
by setting aside the imposition of penalties upon the said appellants. Stay petitions also get
disposed of.

2. The Commissioner has found that the appellant obtained the documents for the export goods
from Deepak Soni without causing any verification of the genuineness and authenticity of the
antecedents of the exporter and that he adopted a very casual approach in acceptance of the
documents without causing proper verification. The Commissioner has held that by his acts of
willful casualness in accepting the export documents without due diligence, he had aided and
abetted the exporters. In my view, this is hardly sufficient to hold that the appellant had
knowledge of fraudulent export of the goods in question by the export firm so as to make him
liable for aiding and abetting and hold him liable to penalty. In this view of the matter, I hold
that no penalty under the provisions of Section 114(iii) of the Customs Act, can be imposed and
accordingly set aside the same and allow the appeal.

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