Case Law Details
Gayrams Shipping Services Vs Commissioner of Central Excise (CESTAT Chennai)
The case of Gayrams Shipping Services versus the Commissioner of Central Excise, adjudicated by the CESTAT Chennai, revolves around the imposition of a penalty on a customs broker for alleged violations under the Customs Brokers Licensing Regulations (CBLR) 2018. The appeal challenges the penalty imposed by the Commissioner of Customs, Tuticorin, under Regulation 18(1) of CBLR 2018.
The appellant, represented by Shri M. Harri Viswanaath, contended that a similar penalty imposed on another customs broker by the Chennai Bench was deleted, citing the case of M/s. Max Miller Agencies versus The Commissioner of Customs, Tuticorin. On the other hand, Shri Harendra Singh Pal, Assistant Commissioner, defended the impugned order, citing findings of the Original Authority and relying on another case, M/s. Seaswan Shipping and Logistics versus The Commissioner of Customs, Tuticorin.
The central issue for consideration was whether the revenue was justified in imposing the penalty under CBLR 18(1) on the appellant. The facts were not disputed: the exporter allegedly misclassified safety matches, availing undue benefits under the Merchandise Exports from India Scheme (MEIS). The appellant, acting as a customs broker, facilitated the filing of export documents. A Show Cause Notice was issued alleging violations of Regulations 10(d) and 10(e) of CBLR 2018. The appellant responded to the notice and offered explanations, leading to an inquiry report submitted by the Inquiry Officer. Based on this report, the Commissioner of Customs imposed a penalty of Rs. 25,000 under Regulation 18(1) of CBLR 2018.
The appellant argued that a similar penalty was deleted by the Chennai Bench in the case of M/s. Max Miller Agencies, Tuticorin, indicating inconsistency in penalty imposition. However, the Assistant Commissioner cited another case, M/s. Seaswan Shipping and Logistics, Tuticorin, where a penalty was upheld under a different section of the Customs Act.
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