2017 (12) TMI 1109 - AT - Customs

Revocation of CHA License - forfeiture of security deposit - export of drugs - Held that - M/s Johar Enterprises was involved in exporting narcotics which is prohibited in law. Being anti-national activity, merely the statement of Ms. Bharti Chawla that somebody has handed over the consignment is neither sufficient nor acceptable - appeal dismissed - decided against appellant-assessee.

Summary

Issues:
1. Appeal against Order-in-Original No.17/SM/Policy/2017 dated 05.04.2017 passed by the Commissioner of Customs (General), New Delhi.
2. Allegation of exporting narcotics by M/s Johar Enterprises.
3. Revocation of license and forfeiture of security deposit.
4. Lack of penal action against Ms. Bharti Chawla.

Analysis:

1. The appeal was filed by Ms. Bharti Chawla, Managing Partner of M/s Johar Enterprises, against the Order-in-Original passed by the Commissioner of Customs (General), New Delhi, dated 05.04.2017. The case involved the filing of a shipping bill on behalf of M/s Global Products, which was found to contain narcotics during examination.

2. Ms. Bharti Chawla's statement revealed that she did not verify the KYC of the exporter and did not physically verify the existence of the exporter. The investigation also included the statement of another individual related to the CHA license issued in the name of Johar Enterprises, indicating a lack of knowledge about the shipping bill in question.

3. Subsequently, the Department revoked the license of M/s Johar Enterprises, which was valid until 04.03.2017, and forfeited the security deposit of ?75,000. The appeal was filed against this decision by the assessee-Appellant.

4. The Tribunal, after hearing both sides, noted that M/s Johar Enterprises was involved in exporting narcotics, which is a prohibited activity. The Tribunal expressed surprise at the lack of penal action against Ms. Bharti Chawla, considering the seriousness of the offense. While the Tribunal acknowledged its inability to enhance the punishment, it upheld the impugned order due to the anti-national activity and drug exportation, emphasizing the insufficiency of Ms. Bharti Chawla's explanation regarding the consignment.

5. Ultimately, the Tribunal dismissed the appeal filed by the assessee-Appellants, citing the involvement of M/s Johar Enterprises in exporting narcotics as the reason for sustaining the impugned order. The judgment highlighted the seriousness of the offense and the need for appropriate action in such cases.

This detailed analysis of the judgment highlights the key issues, facts, statements, and the Tribunal's decision regarding the appeal related to the exportation of narcotics by M/s Johar Enterprises and the subsequent revocation of their license and forfeiture of the security deposit.