Case Law Details
Commissioner Of Customs Vs Air Logix Solutions (CESTAT Delhi)
The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) Delhi, in response to an appeal, has revoked the courier license of Air Logix Solutions following intentional fraudulent activities. The Commissioner of Customs had filed the appeal, challenging the Order-in-Original No. 92/MK/Policy/2019 dated 2.9.2019, which imposed a penalty of Rs. 50,000 on the respondent. The appeal contended that the penalty was insufficient given the intentional fraud committed by Air Logix Solutions.
Background: Air Logix Solutions held the status of a licensed courier with registration No. DEL/POL/COUR/22/2005 issued by the Ministry of Finance dated 27.6.2008. The respondent was obligated to comply with the provisions laid in the Notification No. 07/98-Customs (NT) dated 9.11.1998. An investigation was initiated on April 23, 2018, based on information received that Air Logix Solutions repeatedly used Aadhar No. 233962343459 with different Bills of Entry (BOE) for importing parcels through courier. The Aadhar number was found to have been used 22,433 times between November 2017 and March 2018.
During the investigation, it was discovered that KYC (Know Your Customer) and POD (Proof of Delivery) documents were missing, and the Aadhar number used did not match the GSTN No. given in BOEs. Verification of proof of deliveries revealed that addresses were fictitious, and consignments were bogus. The respondent was served a show-cause notice proposing the revocation of their courier registration for violating CIER, 2010 regulations.
The original Order-in-Original imposed a penalty of Rs. 50,000 on the respondent but did not revoke the courier registration. The Customs department, dissatisfied with the penalty, filed the present appeal, seeking revocation of the courier license.
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