2004 (11) TMI 462 - AT - Customs

Summary

Issues Involved:
Cancellation of clearing agency license due to alleged involvement in customs duty evasion.

Analysis:
The Commissioner of Customs (Gen.), Mumbai, cancelled the clearing agency license of the appellant based on the alleged involvement in customs duty evasion amounting to over Rs. 2 crores. The appellant was accused of colluding with importers to clear engineering ship stores duty-free for the Indian Navy, which were actually diverted to the market (SAIL). The findings highlighted the appellant's lack of proper authorization, failure to verify goods ownership, and negligence in tracking and delivering the consignments to the Navy.

The appellant contended that there was no evidence of collusion and argued that the grounds against them were invalid. They emphasized that the importers were authorized by a group company to file bills of entry, rendering the authorization issue irrelevant. The appellant's role in preparing shipping bills was minimal, and they asserted that they had not provided false information. The appellant denied responsibility for verifying purchases with the Navy and ensuring delivery, citing Customs officers' obligations in these matters.

The Revenue argued that the appellant was responsible for ensuring goods cleared for the Navy were delivered as intended. However, the Tribunal found that the appellant's involvement was minimal, as the importers handled most aspects of the transactions. The Tribunal noted that the Customs authorities could have requested necessary documents for assessment and that the responsibility for ensuring proper delivery rested with the Customs officers, not the clearing agent.

Based on the facts and circumstances, the Tribunal concluded that the Customs authorities were unjustified in accusing the appellant of duty evasion. The extreme action of canceling the license was deemed unnecessary, and the Tribunal granted a stay on the order, allowing the appellant to continue operating as a clearing agent pending the appeal hearing scheduled for a later date.