Case Law Details
Commissioner Vs Aradhya Export Import Consultants Pvt Ltd (CESTAT Delhi)
CESTAT Delhi held that suspension of Customs Broker licence justified as broker has facilitated exporter in undertaking fraudulent exports and claim fraudulent IGST refund.
Facts- There was an investigation report prepared by Nhava Sheva Preventive Unit (NSPU), Mumbai against an exporter M/s Fine Overseas to have fraudulently availed IGST drawback and refund by using bogus manufacturing registration, GST invoice, where no GST duty was being paid to the exchequer but inadmissible refund was being claimed, on the basis of the said bogus invoices which were being disbursed equally to the FOB value of the shipping bill. It was revealed that the said exporter had filed 08 shipping bills during the period August and September, 2018 with FOB amount of Rs. 2,10,14,834.8/- and claimed the IGST refund of Rs. 54,90,378/- for the export of goods i.e. “Clutch Plates & Glass Items, decor glass”. The appellant also got it disbursed from the Government Exchequer. The said amount has been withdrawn to the current bank accounts of appellant.
The exporter had two consignees/buyers based in UAE. It was also revealed that all the said 8 shipping bills were filed through the Customs Broker, namely, M/s Aradhya Exporter & Import Consultant Pvt. Ltd., the present respondent. The said customs broker was holding a customs broker licence bearing no. 33/2017 issued by New Delhi Customs valid upto 12.04.2027. However, based upon the said licence, he was also issued licence bearing no. 11/2439 to work in Mumbai Customs also. The Mumbai licence was also revoked and pursuant to the said order the Delhi Commissionerate also had suspended the CB licence No. 33/2017. Subsequently, the said suspension has been revoked and the same was reviewed vide the aforementioned review order. Being aggrieved, department has preferred the present appeal.
Conclusion- Held that this is a case of not merely the violation of Regulation 10(n) but a case of fraud committed by CB and fraud vitiates everything. The cardinal principal which is enshrined in section 17 of the Limitation Act is that fraud nullifies everything.
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