Case Law Details
Safe Cargo Clearing Services Vs C.C. Ludhiana (CESTAT Chandigarh)
CESTAT Chandigarh held that extreme penalty of revocation of custom broker licence for violating obligation under regulation 10 of CBLR, 2018 unwarranted, however, imposition of penalty and forfeiture of security justified.
Facts- The appellant holds a Custom broker license and was permitted to work as a custom broker at various customs stations. As per the communication from Additional Commissioner, Ludhiana, the appellant has been found involved in a case of fraudulent import pertaining to M/s. PS Traders. As per the mandate of the Regulation 10(n) of the CBLR, 2018 read with the Circular No. 09/2010-Customs dated 08.04.2010, it was incumbent upon the CB to verify identity and functioning of his client at the declared address by using reliable, independent, authentic documents, data or information which apparently the CB have failed to do.
Accordingly, the Commissioner of Customs, in exercise of powers conferred upon him under Regulations 16 (1) of CBLR, 2018, suspended the Customs Broker License issued to Safe Cargo Clearing Services. The suspension of CHA licence was continued vide order in original dated 15.11.2021 by the Commissioner, Customs and later the license of the Custom Broker M/s. Safe Cargo Clearing Services 52, Rasila Nagar, opposite BBMB Power House, Chandigarh Road, Ludhiana was revoked and penalty of Rs. 50000/- has been imposed vide the impugned order. Being aggrieved, the present appeal is filed.
Conclusion- Held that in the present case, the appellant illegally cleared the consignment having cigarettes and later on deleted all the WhatsApp chats/call records with their crime partners. Further, Sunil Dutt has categorically admitted in his statement that he has not obtained any KYC documents from the actual importer and all the documents including the KYC were given to him by Sandeep Kumar inspector and he has never contacted and met the actual importer at any point of time. Thereby, he has violated the regulation 10(n) which prescribed that the custom broker has to verify correctness of the importer exporter code (IEC) number, goods and services tax identification number (GSTIN), identify of his client and functioning of his client at the declared address by using reliable, independent, authentic documents, data or information. The appellant had failed to verify the correctness of IEC, identity and whereabouts of the firms with authentic data and information thereby violating the obligations cast upon it under Regulation 10 (n) of CBLR 2018.
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