2026-VIL-1819-CESTAT-CHE-CU
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CUSTOMS CESTAT Cases

Customs - Penalty under Sections 112(a) and 114AA of the Customs Act, 1962 on a freight forwarder's employee - Facilitation of import of imitation stones by undervaluation through misuse of Importer Exporter Code obtained on rent - DRI investigation revealed an alleged scheme of importing branded glass chatons by gross undervaluation using Importer Exporter Codes obtained for consideration - Appellant, Assistant Manager of a logistics company, was alleged in his statements to have introduced the importer to a Customs clearing agent at Chennai and provided a contact who could arrange Importer Exporter Codes on rent - Commissioner imposed a consolidated penalty on the Appellant under Sections 112(a) and 114AA - Whether the penalty imposed under Sections 112(a) and 114AA is sustainable - HELD - There is no allegation showing that the Appellant committed any blameworthy act, and discussing the securing of an Importer Exporter Code on loan basis is not itself a violation of the Customs Act or the Rules. The question whether use of an Importer Exporter Code issued to another person is permissible, on which the Hon'ble Kerala High Court and the Hon'ble Patna High Court differed, is not relevant here, as the order does not find that the Appellant himself imported goods using a different code. Introducing freight forwarders to an importer is not a violation of the Customs Act, and the role of the Appellant in actually procuring the licence was not brought out with any evidence. Conspiracy is understood as an agreement to commit an illegal act or a lawful act by illegal means, and nothing shows that the Appellant was involved in an illegal act or had knowledge of any illegal activity - The impugned order is set aside and the appeal is allowed
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