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2018 (11) TMI 1231 - AT - CustomsRevocation of CHA License - forfeiture of security deposit - alterations in the bills of entry - revocation on the ground that Appellant allegedly tampered the name and address of importer in 2 B/E pertaining to ICD, Panki, Kanpur and thus knowingly aided and abetted fraudulent availment of CENVAT Credit by importer - Held that - Appellant did not stand to gain in any manner and the only person who stood to benefit from such alteration was the importer and at no point of time during investigation, despite opportunity being available, importer did not furnish or relies on the said letter dated 09.12.2013 or stated that cuting in the Bs/E was made by appellant. Moreover no evidence of any kind was ever furnished by importer to establish issuance or service of said letter on appellant, bald assertion that they wrote the letter dated 09.12.2013 to appellant cannot be accepted and clearly appears to be an afterthought on the part of importer. The Department has failed in bringing on record any evidences to establish that the alterations in the Bs/E were carried by appellant and therefore the finding of Commissioner that appellant tampered the Bs/E is ex facie erroneous and perverse. The impugned order revoking Appellant s licence and forfeiting security deposit is hereby set aside - Appeal allowed - decided in favor of appellant.
Issues Involved:
1. Revocation of Customs Broker Licence. 2. Forfeiture of Security Deposit. 3. Alleged Violation of Customs Broker License Regulations, 2013. 4. Alleged Tampering of Bills of Entry (B/E). 5. Fraudulent Availment of CENVAT Credit. Detailed Analysis: 1. Revocation of Customs Broker Licence: The appellant, a Customs Broker, had their license revoked by the Commissioner of Customs (Import & General), New Delhi, for allegedly tampering with the name and address of the importer in two Bills of Entry (B/E) and aiding in the fraudulent availment of CENVAT Credit by the importer. The license was revoked under the Customs Broker License Regulations, 2013, specifically for violations of Regulations 11(d), (e), (j), and 17(9). 2. Forfeiture of Security Deposit: Alongside the revocation of the license, the entire security deposit of the appellant was forfeited. This action was taken based on the alleged violations of the Customs Broker License Regulations, 2013, and the conditions of the bond executed by the appellant. 3. Alleged Violation of Customs Broker License Regulations, 2013: The appellant was accused of failing to comply with the provisions of Regulations 11(d), 11(e), 11(j), and 17(9) of the Customs Broker License Regulations, 2013. The specific allegations included tampering with the Bills of Entry and aiding the importer in fraudulent activities. 4. Alleged Tampering of Bills of Entry (B/E): The case centered around the alleged manual tampering of two Bills of Entry (B/E No. 296544 dated 12.08.2013 and B/E No. 5689777 dated 03.06.2014) by the appellant. The tampering was purportedly done to change the importer’s name from M/s Shree Packaging to M/s Quality Packaging, thereby facilitating the fraudulent availment of CENVAT Credit. 5. Fraudulent Availment of CENVAT Credit: The fraudulent availment of CENVAT Credit by the importer was a key issue. The Central Excise officers discovered that the unit had availed and utilized CENVAT credit based on the tampered Bills of Entry. The appellant was accused of aiding and abetting this fraudulent activity. Judgment Analysis: Findings of the Commissioner: The Commissioner held that the appellant had tampered with the Bills of Entry without the knowledge of the Customs Authorities to aid the importer in availing CENVAT Credit fraudulently. The Commissioner’s findings were based on the sequence of events and the letter dated 09.12.2013 from M/s Shree Packaging to the appellant, which suggested that the appellant was responsible for the amendments. Appellant’s Defense: The appellant admitted to an initial error in entering the importer’s name but denied receiving any letter from the importer for amendment or making any tampering. The appellant argued that the findings were perverse and contrary to the evidence on record. Tribunal’s Observations: The Tribunal noted several key points: - The appellant did not stand to gain from the alterations. - The importer did not inform the appellant about the error at the time of receiving the goods or taking the CENVAT Credit. - During the investigation, the importer did not produce any letter or state that the alterations were made by the appellant. - The letter dated 09.12.2013 did not contain any proof of being served on the appellant. - The Central Excise Show Cause Notice indicated that the tampering was done by the importer, not the appellant. Conclusion: The Tribunal concluded that the Department failed to provide evidence that the alterations in the Bills of Entry were made by the appellant. The findings of the Commissioner were deemed erroneous and perverse. Consequently, the appeal was allowed, the revocation of the appellant’s license was set aside, and the security deposit was ordered to be returned. The Customs Broker license of the appellant was reinstated with immediate effect. Final Order: The Tribunal ordered the reinstatement of the appellant’s Customs Broker license and the return of the forfeited security deposit. The operative part of the order was pronounced in the open court at the conclusion of the hearing on 27.09.2018.
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