No Import of Prohibited / Restricted Goods: CESTAT sets aside Penalty u/s 117 of Customs Act

The Bangalore bench of the Customs Excise and Service Tax Appellate Tribunal (CESTAT) has reversed the penalty imposed under Section 117 of the Customs Act, 1962, citing no import of prohibited or restricted goods by M/s. Orbit Trans Express & Freight Pvt. Ltd., an authorized courier agent. 

Allegations of mis-declaring the value in collaboration with M/s. KT Technologies were refuted, with the importer later admitting to assistance from others. While the revenue argued gross mis-declaration and non-compliance with regulations, the tribunal found the penalty unsustainable as it was proposed under Regulation 14 of the Courier Import and Export (Electronic Declaration and Processing) Regulation, 2010. 

Additionally, the tribunal noted discrepancies in the customs authority's allegations and actions, concluding in favor of the appellant, setting aside the penalty and revocation of the courier license.