Durga Link Logistics (Pvt.) Ltd Vs Commissioner of Customs (Airport & General) (CESTAT Delhi)
CESTAT Delhi held that revocation of customs broker license unjustified as there is no evidence that shows that the customs broker was aware about the mis-declaration of weight of pan masala as declared in the shipping bill.
Facts-
The present appeal has been filed to assail the order vide which the revocation of appellant’s customs broker license, forfeiture of security deposit and imposition of penalty of Rs.50,000/- has been ordered.
Pursuant to acting on an intelligence, the goods covered by three shipping bills filed by M/s. Batra Enterprises were got examined by the officers of SIIB. The said shipping bills were filed through M/s. Durga Link Logistics Pvt. Ltd. i.e. the appellant. When goods are exported, the exporter or its customs broker (the appellant in this case) files the shipping bill online on the Indian Customs EDI System (ICES). He also files the supporting documents such as invoice and packing list on the portal (e-sanchit) and files word copies of these documents which will be kept in a docket in the custom house. The scanned copies of the documents filed on e-sanchit help the officers to process the shipping bill quickly without having to refer to the physical copies in the docket.
In this case, the Customs Broker (the appellant) allowed the freight forwarder M/s. Toshnek International Freight Forwarder to use its credentials to file the documents instead of filing the documents by itself. The freight forwarder uploaded documents (invoice and packing list) sharing inflated quantities of pan masala when the actual documents filed in the docket shared lower quantities. This, according to the Revenue was done to claim excess IGST refund.
Accordingly, Show Cause Notice was served upon the appellant. It was alleged that the appellant by non-filing of shipping bills of the exporter, by not checking the correctness of information i.e. the mis-declaration of weight of pan masala in all three of the shipping bills, being the custodian of file has neglected its duties by non-uploading the proper documents, has failed to discharge his duties as customs broker. He was alleged to have contravened Regulation 10(a), 10(b), 10(d), 10(e), 10(j), 10(k) and 10(q) of Customs Brokers Licensing Regulations, 2018. Accordingly, the license of the appellant with the validity till 31.03.2031, was proposed to be revoked and the penalty was proposed to be imposed. The said proposal has been confirmed vide the order under challenge. Being aggrieved the appellant is before this Tribunal.
Conclusion-
ITAT Bangalore in Jeena and Company vs. Commissioner of Customs, Bangalore has held that No evidence to show that Agent had knowledge of wrong doing of importer and colluded with importer to defraud Revenue-Not appropriate to punish CHA for filing document in good faith and on basis of documents supplied by importer.
Held that we are not in conformity with the findings as far as Regulation 10(d), 10(j), 10(k) and 10(q) of CBLR, 2018 are concerned. The order under challenge is therefore set aside to this extent. However, the findings in the impugned order with respect to violation of Regulation 10(a), 10(b) and 10(e) are hereby confirmed. The order to this extent is upheld. Further, we are of the view that though the appellant is held guilty of the violations under Regulation 10(a), 10(b) and 10(e) but these are not so grave as to justify the revocation of the customs license. These violations are observed to be the consequence of negligence on part of the appellant custom broker. Depriving him of his livelihood is held to be disproportionate in the light of given findings.
FULL TEXT OF THE CESTAT DELHI ORDER
The present appeal has been filed to assail the Order-in-Original No. 43/2022 dated 07.07.2022 vide which the revocation of appellant’s customs broker license, forfeiture of security deposit and imposition of penalty of Rs.50,000/- has been ordered. The facts in brief are as follows:
Pursuant to acting on an intelligence, the goods covered by three shipping bills filed by M/s. Batra Enterprises were got examined by the officers of SIIB, ICD (Export), Tughlakabad, New Delhi on 29.01.2021 at ICD Tughlakabad Port. The aforesaid shipping bills were filed through M/s. Durga Link Logistics Pvt. Ltd. i.e. the appellant. When goods are exported, the exporter or its customs broker (the appellant in this case) files the shipping bill online on the Indian Customs EDI System (ICES). He also files the supporting documents such as invoice and packing list on the portal (e-sanchit) and files word copies of these documents which will be kept in a docket in the custom house. The scanned copies of the documents filed on e-sanchit help the officers to process the shipping bill quickly without having to refer to the physical copies in the docket. In this case, the Customs Broker (the appellant) allowed the freight forwarder M/s. Toshnek International Freight Forwarder to use its credentials to file the documents instead of filing the documents by itself. The freight forwarder uploaded documents (invoice and packing list) sharing inflated quantities of pan masala when the actual documents filed in the docket shared lower quantities. This, according to the Revenue was done to claim excess IGST refund. Difference in the weight and the amount declared from the weight and amount in the packing list was observed. Following are the details:
