Case Law Details
Ramesh Transport Company Vs Principal Commissioner of Customs (CESTAT Mumbai)
CESTAT Mumbai imposed penalty on customs broker for failure in not being proactive in fulfilling their obligation by failing to bring to the notice of the Customs department about the non-compliances in export transactions.
Facts- An investigation report was received by the department from Serious Fraud Investigation Office (SFIO) of Ministry of Corporate Affairs, New Delhi in the matter of M/s ABC Cotspin Pvt. Limited (ABCCPL) in which an investigation was conducted u/s. 212(1)(c) of the Companies Act, 2013.
The said investigation was ordered based on the report of fraud in FMR 1 to Reserve Bank of India (RBI) by State Bank of India (SBI), Bank of Baroda (BoB) and Axis Bank Limited. These banks reported that ABCCPL committed fraud on them by availing export finance by submission of export bills without making exports.
Shri Sanjeev Verma, Director of M/s RSS Shipping P Limited (RSSSPL) were doing CHA work under the authority of M/s Ramesh Transport Co., i.e., the appellants. Thus, the department alleged that appellants have handled exports in respect of RSSSPL and ABCCPL. Whereas the department alleged that appellants knowingly assisted the above ABCCPL and RSSSPL by providing false, fabricated documents as a part of export bills to the banks, separate proceedings under CBLR was initiated by jurisdictional Principal Commissioner on the appellants by immediate suspension of the Customs Broker’s (CB) license of the appellants under Regulation 16(1) ibid, vide ex-party Order No.36/2019-20 dated 27.08.2019.
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