Declaration and assessment

Deputy Collector of Customs, later on, considered that vehicle was assessed under wrong PCT classification and attracted higher rate of duty and taxes; show-cause notice was issued and order-in-original was passed

Collector of Customs (Appeals) dismissed the appeal being barred by time

Validity

Deputy Collector of Customs having passed assessment and clearance orders, could not issue show-cause notice or pass order-in-original against importer's Clearing Agent for the negligence and lapses on his part

No charge of mis-declaration in material particulars was visible from the documents

Order was completely silent with regards to either willful act, negligence or default on the part of the Clearing Agent

Examination and assessment orders had been passed by Customs Officers without any influence of Clearing Agent

Appellate Tribunal annulled the show-cause notice and set aside the orders passed by customs authorities.

Provisions of Ss. 79 and 80 of Customs Act, 1969 revealed that importer or his agent had to file goods declaration for release of goods on which Assessing Officer had to make an assessment and any claim made by an importer was subject to scrutiny by assessing officer who had been vested with unfettered powers to complete an assessment

Claim was subject to approval by a competent officer and where a competent authority granted or rejected the claim, no charge of fraud or otherwise could be linked to the Agent or to the principal, whose duty was to submit relevant documents for processing for release of consignment or application

Held, that Department which issued show-cause notice grossly misunderstood the scheme of operative mechanism of Ss. 32 & 80 of Customs Act, 1969

Liability of Clearing Agent during the course of clearance of consignment had to be evaluated under Ss.207, 208 and 209 of Customs Act, 1969 which indicated that an Agent represented his principal until and unless any direct evidence was attributed against him or when department was not able to prove any criminal intent on his part, he could not be penalized under general provisions of Customs Act, 1969 unless he violated the governing condition of his licence

Clearing Agent, in normal course of business, filed a bill based upon the documents and information provided by importer and he could not be presumed to be privy to any illegal arrangement, which importer might have intended in his mind

For such purpose some evidence of his direct involvement will have to be brought on record.