Commissioner of Customs Vs Leona Worldwide Logistics (CESTAT Chennai)
The Customs Excise and Service Tax Appellate Tribunal, Chennai dismissed an appeal filed by the Revenue challenging an order that imposed a penalty of ₹50,000 on a Customs Broker for violations under the Customs Brokers Licensing Regulations (CBLR), 2013, without revoking the licence. The case arose from scrutiny of export documents where forged mate receipts bearing falsified signatures of a steamer agent were submitted in respect of certain shipping bills. Investigation revealed that an employee of the Customs Broker had forged the mate receipts to avoid late fees and due to loss of original documents. The partner of the firm admitted the misconduct, resulting in a finding that the Customs Broker failed to discharge obligations under Regulation 17(9) of the CBLR, 2013.
A show cause notice proposed revocation of the Customs Broker licence and forfeiture of security deposit. The Inquiry Officer found violations of Regulations 17(9) and 18(c). However, after considering the Inquiry Report, the explanations offered, and submissions made during personal hearing, the Commissioner chose to impose a penalty of ₹50,000 and did not revoke the licence. The Revenue appealed, contending that the penalty was not commensurate with the gravity of the offence and that licence revocation was warranted.
