Saarthee Shipping Co Vs Commissioner of Customs (CESTAT Ahmedabad)
The appeal concerned suspension of a Customs Broker (CB) licence under the Customs Brokers Licensing Regulations (CBLR), 2018 in connection with illegal import of heroin concealed in a consignment declared as semi-processed talc stone. The appellant, acting as a Customs Broker, had processed import documents and filed the bill of entry for the consignment. Based on scanning at Mundra port, the container was flagged for mismatch and marked for 100% examination; however, only one package was examined. The matter was investigated by the National Investigation Agency, and based on vigilance reports, proceedings were initiated, leading to suspension of the licence.
The appellant contended that suspension was unwarranted as inquiry proceedings were already ongoing, alleged violation of principles of natural justice, and argued that there was delay of over four years in initiating action. It also claimed to have exercised due diligence in verifying KYC documents and the importer’s credentials.
The Tribunal found that there was no delay attributable to the Department, as action was taken promptly after receipt of the vigilance report following investigation. It held that case laws cited by the appellant on delay were not applicable.
On merits, the Tribunal observed that the appellant failed to verify the identity and authority of the person representing the importer and did not ensure compliance with the requirement of 100% examination despite clear instructions. It noted that the importer’s business profile and the nature of goods should have raised suspicion. These lapses were found to be violations of obligations under Regulation 10 of CBLR, 2018.
