Delhi HC says CHA Penalty Cannot Rest on Association Without Evidence of Involvement

The Delhi High Court set aside the penalty imposed on a Customs House Agent allegedly connected with an attempted import of prohibited firecrackers concealed behind declared bicycle parts. The adjudicating authority had itself found that the appellant's role in the import was not established, but imposed penalty based on alleged knowledge of misdeclaration, arranging meetings and facilitating the use of another entity's KYC documents. The Court found no independent evidence connecting the appellant with the import, noted that the penalty against the alleged importer had already been set aside, and found that the appellant's specific request for cross-examination had been wrongly overlooked by CESTAT. The penalty and the Tribunal's order were accordingly set aside.