No penalty for the importer due to an error made by the exporter in the entry declaration: CESTAT

No penalty - Importer - Error - Exporter - Entry declaration - CESTAT - Taxscan

The Delhi CESTAT Bench ruled that the penalty under the Customs Act 1962 cannot be imposed on an importer for errors in the entry declaration made by the exporter.

The Bill of Entry has been assessed and marked for review by the SIIB based on the first check. The goods were initially examined on 03/28/2011 and then final examination on 04/04/2011. Upon review, it was found to have a mismatch with regards to quantity and also contained branded products like Nokia chargers. Some undeclared travel chargers and power adapters were also found and a penalty was imposed on the importer accordingly.

The appellant maintained that this was his first order through M/s Pama and Company Ltd. UK but, due to an error made by the exporter/shipper, he has also imported other goods which are not in accordance with the purchase order.

The Judicial Member, Mr. Anil Chaudhary, observed that there is no instance of willful misrepresentation on the part of the appellant importer.

“The Bill of Entry had been filed in accordance with the packing list and the bill of lading. Further, the Shipper/Exporter accepted his mistake, that there was error at the time of packing the goods at its end This persuasive explanation has not proven to be false. I further note that the appellant had already suffered a financial loss at the end of the payment of the shipment to the sender. In view of my conclusions, I have canceled the penalty imposed under section 112a of the Act. The appeal is allowed, the appellant is entitled to consequential compensation, in accordance with the law,” the Tribunal said.

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M/s Callmate India Pvt Ltd v Commissioner of Customs

Counsel for the Appellant: Shri Akshay Anand

Counsel for the Respondent: Shri Pradeep Gupta