2018 (5) TMI 893 - AT - Customs

Revocation of CHA License - forfeiture of security deposit - violations of Regulation 11(a), (b) and (d) of the CBLR - Held that - for violation of CBLR, 2013 which stands established during the enquiry proceedings, the revocation of the Customs Broker Licence is too harsh a punishment and hence, revocation is set aside - the forfeiture of the security deposit as well as penalty of ₹ 50,000/- imposed by the adjudicating authority upheld - appeal allowed in part.

Summary

Issues: Revocation of Customs Broker Licence, Mis-declaration of imported goods, Violations of Regulations

Revocation of Customs Broker Licence:
The appeal was filed against the revocation of the appellant's Customs Broker Licence by the Commissioner of Customs, New Delhi. The appellant, a CHA, was accused of facilitating the clearance of imported goods declared as "Vinyl coated paper clip" but found to be Measuring Tape of "Zebra" brand without the necessary permission from the Bureau of Indian Standards (BIS). The appellant argued innocence, claiming to have relied on documents provided by a freight forwarder. The Revenue justified the revocation, citing the appellant's failure to verify the imported goods' genuineness, leading to Anti-Dumping duty implications. The Tribunal found the appellant guilty of violations of various regulations but deemed the revocation of the licence as too harsh a punishment. Consequently, the revocation was set aside, and a penalty of ?50,000 was upheld along with the forfeiture of the security deposit.

Mis-declaration of Imported Goods:
The appellant had filed a Bill of Entry declaring the goods as "Vinyl coated paper clip" but the actual goods were Measuring Tape of "Zebra" brand. The adjudicating authority held the appellant responsible for mis-declaration and facilitating the clearance of goods without proper verification. It was noted that the appellant failed to advise the client on customs regulations, including the requirement for BIS certification for importing Measuring Tape. The Customs Department found serious mis-declaration by the importer, with the appellant facilitating such actions, violating provisions of the Customs Act, Foreign Trade Regulation Act, and Legal Metrology Act, 2009.

Violations of Regulations:
The appellant was found guilty of violating Regulation 11(a), (b), and (d) of the CBLR by filing import documents without verifying KYC and relying on documents from an unauthorized source. The appellant's actions were deemed to have facilitated mis-declaration and attempted clearance of goods, breaching various legal provisions. Despite establishing violations during the enquiry, the Tribunal considered the revocation of the Customs Broker Licence as excessive and modified the impugned order, partially allowing the appeal by setting aside the revocation while upholding the penalty and forfeiture of the security deposit.