Breach of regulation 11(m) of CBLR unsustainable as sub-let owner failed to dealt with export consignment

Mahendra Shipping Agency Vs Principal Commissioner of Customs (General) (CESTAT Mumbai)

CESTAT Mumbai held that there is no breach of regulation 11(m) of Customs Broker Licensing Regulations, 2013 (CBLR) as the licence is sub-let and two employees of sub-let owner failed to dealt with export consignment.

Facts- In this appeal, M/s Mahendra Shipping Agency, a customs broker, challenges revocation of licence no. 11/369 and forfeiture of security deposit under regulation 20 and regulation 18 of Customs Brokers Licensing Regulations, 2013 in order of Principal Commissioner of Customs (General), New Custom House, Mumbai.

It is seen from the records that proceedings were initiated against the appellant by notice dated 15th April 2014 enclosing the grounds of imputation and articles of charge, for breach of regulation 10, 11(a), 11(b), 11(d), 11(e), 11(m) and 11(n) of Customs Broker Licensing Regulations, 2013, in connection with the handling of 66 packages of ‘readymade garments’ for export to Sudan and Nigeria against 12 shipping bills of M/s Orient Exports that were taken up for investigation by Commissioner of Customs (Export), ACC, Mumbai as intimated by letter of 31st January 2014. The articles of charge relied upon the said letter of Commissioner of Customs (Export) as well as statements of two purported employees of M/s Millenium Freight Forwarders Pvt Ltd recorded on 19th November 2013 and it is the claim of the appellant that the two, Mr Shailesh Watambale and Mr Ganesh Salaskar, were their employees in possession of ‘customs pass’ issued on their request of 4th July 2011 and 14th March 2012 respectively.

Conclusion- The findings, insofar as the alleged breach of regulation 11(m) of Customs Broker Licensing Regulations, 2013 by not verifying antecedents and correctness of the import-export code (IEC) and other details is concerned, is also based entirely on the role played by M/s Millenium Freight Forwarders Pvt Ltd as ‘sub-let’ owner of the licence. It has been held that the two employees of the appellant were, in fact, employees of the M/s Millenium Freight Forwarders Pvt Ltd and, in view of our finding supra on the issue of ‘subletting’ as well as the employment of the said two persons and in the light of the uncontroverted finding that the two employees have not dealt with the export consignment, it cannot be said that this Regulation had been breached by the appellant.

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