Case Law Details
Speedway Cargo & Courier Services Vs Commissioner of Customs (Import & General) (CESTAT Delhi)
Facts- The appellant imported, at the I.G.I. Airport, a shipment of 80 boxes from Doha on 29.05.2019 and another shipment of 98 boxes from Bahrain on 01.06.2019. The above said consignments were examined by the Special Investigation & Intelligence Branch of the Air Cargo Complex Commissioner of Customs (Export), New Delhi. It was found that there were discrepancies in respect of seventeen consignments. Eight boxes were found to be consigned to States other than the seven States (i.e. Delhi, Haryana, Punjab, Himachal Pradesh, Jammu and Kashmir, Uttar Pradesh and Uttarakhand) permitted by the Public Notice and in respect of nine consignments names/addresses of the consignees mentioned in the declarations and on the on the invoices attached/pasted on the packages were different.
Proceedings were initiated under the provisions of Customs Act, 1962. The appellant by letter dated 24.7.2019 submitted that due a technical problem in the software used for generating addresses in their Doha and Bahrain office, the addresses were wrongly printed and the details of the invoices were not double checked by their staff due to carelessness. The appellant submitted cancellation receipts and KYC documents of the consignor and consignees and requested for a lenient view. The proceedings culminated in the issue of Order-in-original dated 25.09.2019, by the Deputy Commissioner. The value of the impugned goods, valued at Rs. 1,79,403/-, was enhanced under Section 111(l) and 111(m) of the Customs Act while giving an option to redeem on payment of Redemption Fine of Rs.80,000 and applicable duties and penalties of Rs. 7,000/- and Rs. 2,00,000/-were also imposed on the appellant under Sections 112 and 114AA of the Act. The appellant accepted the said Order dated 25.09.2019 and paid up the levies and did not file any appeal.
The Commissioner of Customs (Import & General), New Custom House, New Delhi, suspended the courier licence of the appellant with immediate effect; issued a show cause notice dated 23.12.2019 seeking an explanation as to why the License should not be revoked and appointed an Inquiry Officer to determine the grounds for revocation of the license of the appellant.
Conclusion- The Government has been simplifying the law and procedure relating to imports through courier from time to time. Accordingly, lot of trust and reliance has been placed on the courier agencies. A very clear procedure has been put in place by way of Courier Regulations to stream line the imports through Courier mode. It was incumbent upon the appellant Courier agency to adhere to the Regulations in order to safeguard the interest of Revenue and the trust placed on them. The appellant Courier was mandated to work within legal framework of the Customs Act, 1962, Rules and Regulations made thereunder. The appellant failed to do so. The appellant did not exercise due diligence in submitting the correct and complete information to the assessing officer with reference to the impugned goods. By violating the Regulations, it had given scope for massive misuse of the facility given in addition to loss of Revenue. In short, the appellant courier agency has breached the trust reposed on it by the Revenue. Therefore, the revocation of License is justified and any leniency shown in the misconduct of this nature would send wrong signals. Punishment of revocation of Licence would certainly go a long way to act as a deterrent. In view of the above, there is no reason to interfere with the impugned order and, accordingly, the appeal is liable for rejection.
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