2015 (2) TMI 1072 - AT - Customs

Benefit of Notification No.171/93-Cus. dt. 16/09/1993 read with CIECR - Appellants had not taken authorization from the persons to whom the consignments were delivered to ensure that such consignees were in existence and as required by regulations - Held that - According to Regulation 13(a) of CIECR, the appellants are required to keep the authorizations for a period of one year so that the Customs authorities can inspect the authorizations and satisfy themselves about the bona fide of the receivers. However in both the cases, the demands have been confirmed for the period of more than one year and there is no indication as to whether the appellants had fulfilled the requirements of Regulation or not. Further all the items have been assessed at a single rate whereas in the case of courier operators, it is required to be examined whether legally individual items have to be assessed as is done in the case of Bill of Entry filed in the normal course. If that is the case, the question of correctness of assessment also arises. Moreover there was also a submission in one of the cases that they had submitted documents and this also has to be verified. Further if the authorizations are available, at least some sample verifications have to be done to ensure that such consignees were non-existent, bogus or not genuine. We feel that matter is required to be reexamined under these circumstances and adjudicated afresh. Accordingly, the impugned orders are set aside and matters are remanded for de novo adjudication - Decided in favour of assessee.

Summary

Issues:
1. Import of non-bona fide unaccompanied baggage as bona fide gifts by courier operators.
2. Requirement of authorization from consignees under Regulation 13(a) of Courier Imports and Exports (Clearance) Regulations, 1998 (CIECR).
3. Compliance with the regulatory requirements by the courier operators.
4. Assessment of items at a single rate instead of individually.
5. Verification of documents submitted by the appellants.
6. Need for sample verifications to ensure consignees' authenticity.

Analysis:
1. The judgment dealt with two appeals involving the importation of non-bona fide unaccompanied baggage as bona fide gifts by courier operators operating at Trivandrum International Airport. The appellants cleared goods intended for commercial purposes under the guise of gifts, availing benefits under Notification No.171/93-Cus. The impugned orders highlighted the failure of the appellants to obtain proper authorization from consignees as required by Regulation 13(a) of CIECR.

2. The appellants argued that they had obtained authorizations, but discrepancies were noted in the case of the second appellant who had not taken authorization from all consignees. The tribunal acknowledged the need for fresh adjudication due to non-compliance with the regulatory requirements regarding the maintenance and inspection of authorizations for a year to verify the bona fide nature of receivers.

3. Additionally, the tribunal raised concerns about the assessment process, suggesting that individual items should be assessed separately, similar to Bill of Entry filings. The need for verification of submitted documents and sample checks to confirm the authenticity of consignees was emphasized. The tribunal concluded that the matter required reexamination and remanded the cases for de novo adjudication, ensuring the appellants are granted a fair opportunity to present their case.

4. The judgment underscored the importance of regulatory compliance, proper documentation, and thorough verification processes in the courier industry to prevent misuse of benefits and ensure the legitimacy of imported goods. The decision aimed to uphold the integrity of customs procedures and protect against potential fraudulent activities within the courier operations at the airport.