Case Law Details
JKG Infralogistics Pvt. Ltd. Vs Commissioner of Customs (Administration & Airport) (CESTAT Kolkata)
Introduction: In the recent case of JKG Infralogistics Pvt. Ltd. vs. Commissioner of Customs (Administration & Airport) at CESTAT Kolkata, the Customs Broker faces allegations of fraud related to the export of ball bearings. The appellant, a Customs Broker, challenges penalties imposed under the Customs Broker Licensing Regulations (CBLR).
Detailed Analysis: The appellant, a licensed Customs Broker, handled the export of ball bearings for M/s. Gupta Vyapaar. The investigation revealed alleged over-valuation of consignments to defraud the government and gain additional benefits. The Customs Broker, accused of facilitating the fraud, faced a show cause notice under CBLR 2018.
The case hinges on violations of CBLR, including Regulation 10 (d), (m), (n), and (q). The appellant contends the absence of evidence linking them to the export goods’ over-valuation. The chartered engineer’s testimony lacked substance, and no conclusive proof established the Customs Broker’s involvement in the alleged misconduct.
The appellant argued their non-involvement in export value declarations, as it falls under the exporter’s sole prerogative. The absence of malice and the appellant’s cooperation in the investigation further weakened the case against them. The department’s circumstantial evidence lacked independent corroboration, failing to substantiate the allegations.
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