Case Law Details
Info Capital Logistic Co. Vs Commissioner of Customs (CESTAT Delhi)
Conclusion: Since the Custom Broker was liable to verify genuineness of importer-exporter code, IEC number, identity of client to prevent facilitation of export prohibited goods, therefore, custom broker was liable for penalty in case of breach of KYC norms and mandatory obligations under Customs Broker Licensing Regulation, 2013.
Held: In the instant case, appellant M/s CSB Logistic (Custom Broker) was duty bound as a Custom Broker under the Regulation of 2014 to verify antecedents and genuineness of the importer exporter code, IEC number, identity of their client and functioning of their client at the declared address by using reliable, independent and authentic documents/ data/ information. As per the facts on record, the Custom Broker did not meet the exporter or the owner of the said Fashion World or the master mind Reyaz Ahmed, the person who originated the goods for exporter, which were prohibited. Thus, their negligence had facilitated the mischievous exporter in attempting to export prohibited goods. Further, they had similarly facilitated the export of about eight consignments in the recent past and there was reasonable belief that such consignments also had prohibited goods. As a custom Broker deals with the documents and details of export/ import consignment for clearance, and was the representative of their client – importer or exporter, before the customs. Accordingly (CSB Logistics), were liable for penal action under Section 114. However, as per the evidence on record, appellant had not made any profit and/or participated in any profit in the export of prohibited goods rather had acted on normal remuneration basis as a freight forwarder. Accordingly, the appeal was allowed by reducing the quantum of penalty.
FULL TEXT OF THE CESTAT DELHI ORDER
Brief facts of the case are that one M/s Fashion World – exporter, filed airway shipping bill No. 5004801 dated 15.09.2014 through their Customs Broker – M/s CSB Logistics. The goods were declared as Clutch Plates for vehicles, packed in four wooden crates having gross weight of 1271 kgs. (250 pcs. contained in each wooden crate). The declared value of the goods was Rs. 2,16,000/-.
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