ECG Easy Connect Logistics Pvt. Ltd Vs Commissioner of Customs (Delhi High Court)
Conclusion: Assessee was complicit in the misdeclaration and the illegality committed by the importers over alleged import of counterfeit iPhones, therefore, revocation of the courier registration should be given effect from 18th August, 2023 till 1st September, 2025 and out of Rs.10 lakhs, a sum of Rs. 5 lakh should stand forfeited and the remaining Rs. 5 lakh should be treated as security for the purpose of allowing assessee to operate as a registered courier agency.
Held: In the instant case, the license of assessee-company who was engaged in Customs clearance through courier mode was cancelled, over misdeclaration of imported goods. It was alleged that assessee mis-declared the quantity, value, description and classification of goods being imported. The mis-declaration was of the fact that these were merely parts of i-Phones, when rather, the goods were full iPhones which were being imported, by declaring them as spare parts. Assessee argued that the responsibility in such cases was that of the importers and the courier agency could not have been blamed. Hence, the revocation of its courier registration was untenable. Department urged that assessee was guilty of forgery of documents and was also connected to the importers and therefore, could not claim to be innocent. On appeal. It was held that there was a clear misdeclaration as to the value of goods, nature of goods and also the fact that these were spare parts of i-Phones. Even the proof of delivery of goods would show that though the consignments were meant for different destinations, namely Nagpur and Calcutta, assessee had delivered the same to one individual. These facts, according to the CESTAT, confirmed that assessee was complicit in the misdeclaration and the illegality committed by the importers. The final order passed by CESTAT dated 22nd March, 2024 did not deserve interference. Nonetheless, the Court observed that revocation of courier registration for the entire period till 2031 was ‘disproportionate’ as though assessee was complicit, it was not the ultimate beneficiary. As such, the Court directed that revocation of the courier registration should be given effect from 18th August, 2023 till 1st September, 2025. Insofar as forfeiture of security was concerned, out of Rs.10 lakhs, a sum of Rs. 5 lakh should stand forfeited and the remaining Rs. 5 lakh should be treated as security for the purpose of allowing assessee to operate as a registered courier agency. Penalty of Rs. 50,000/- imposed by the order of CESTAT dated 22nd March, 2024 was also upheld.
