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TMI Blog2021 (9) TMI 456X X X X Extracts X X X X X X X X Extracts X X X X ..... e red sanders, the export of which is prohibited. Accordingly, the goods were seized. 3. On examination and enquiry by the Customs revealed that i) one Reyaz Ahmed alias Rajbir alias Dharmendra on behalf of M/s Fashion World (IEC holder) contacted Shri Praveen Pant of M/s Cargo Specialist Inc. (a freight forwarder) for export of the seized consignment; ii) Shri Praveen Pant without verifying the genuineness of the exporter or the documents and their credentials, handed over the consignment to another forwarder - M/s Info Capital Logistic Ltd., iii) who again forwarded the consignment to another forwarder namely - M/s Blue Bell Logistics, without verifying the genuineness of the exporter of the consignment and its documents; iv) Thereafter, M/s Blue Bell Logistics further handed over the documents etc. relating to the consignment for export, including filing of Bill of Entry, to the Customs Broker - M/s CSB Logistics. 4. Shri Charan Dass, Prop. of M/s CSB Logistics, (the Customs Broker) in his statement dated 18.09.2014 stated that he was looking after the aforesaid shipment given to him by M/s Blue Bell Logistics - freight Forwarder (their associate). He has also deputed three of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bers of these persons are 7827734517 (Reyaz Ahmed) and 8468958068 (Rajbir). Both the mobile numbers were found switched off; (c) That Shri Pant of Cargo Specialist Inc., has dealt with about 9 consignments of this party during the last two months. (d) That these consignments were destined to Dubai, Germany and Malaysia; (e) That the firm M/s Cargo Specialist Inc., of Sh. Pant is a non IATA, and he provides a single window facility from his firm for all services starting from freight forwarding to customs clearance of export consignments; (f) That he used to outsource the business to other freight forwarders/CHAs, thereby taking profit margin; (g) That Sh. Pant was a contact of Sh. Tushar Ghosh of ICL and had forwarded all the 9 consignments (including the current consignment), to M/s ICL for freight forwarding and customs clearance; (h) That Sh. Tushar Ghosh came into contact with Sh. Pant through a common friend; (i) That M/s ICL is also a non IATA and their main business is providing complete logistic solutions to their clients with main focus on sea freight and customs clearance thereof. However, they also deal in air freight which they do through outsourcing of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he instant case has been found identical at all ends i.e. from Sh. Pant, Sh. Tushar, Sh. Aneesh, Sh. Charan Dass and Sh. Shivan Sarna. (o) Shri Shivan Sarna employee (H card) of CHA has also confirmed that he had dealt with all the 9 consignments of the party and he arranged to unload the shipments at cargo terminal from the vehicles which carried the shipments. Shri Sarna also confirmed that packing of all the earlier consignments were identical to the packing of the instant consignment. (p) The impugned goods i.e. Red Sanders/ Wooden Logs were knowingly and intentionally mis-declared and attempted to be exported under the guise of clutch plates for vehicles. 7. On the basis of current account No. 913020052045498, as declared by the party in their IEC code, a letter to branch manager, Axis Bank, Plot No. 104, Pocket 27, Sector-24, Rohini, New Delhi was issued with a request to furnish the latest status of the exporter's account and account statement, whether the account is active or dormant, in operative or closed. It was also requested to provide all the addresses alongwith KYC details as submitted by the exporter at the time of opening of account in their bank. The Axis Ban ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds. Further, proposal to impose penalty on the appellants including M/s Fashion World under Section 114 of the Customs Act. The show cause notice was contested by the appellants save and except M/s Fashion World. The red sanders about 1004 kg. valued at Rs. 10,04,000/- was absolutely confiscated under Section 113(d), (h) and (i) of the Customs Act. The clutch plates were also absolutely confiscated under Section 119 of the Act. Further penalties were imposed as follows:- Sl. No. Name of firm Amount of penalty (Rs.) Under Section 1 M/s Fashion World 10,00,000/- 114, 132 135A 2 M/s CSB Logistics 8,00,000/- 114 3 M/s Cargo Specialist Inc. 8,00,000/- 114 4 M/s Info Capital Logistic Co. 3,00,000/- 114 5 M/s Blue Bell Logistics Pvt. Limited 8,00,000/- 114 11. Being aggrieved by the order-in-original passed by the Additional Commissioner, the appellants herein preferred appeals before the learned Commissioner (Appeals), who vide the impugned order have recorded the finding as follows:- (a) M/s CSB Logistics - This appellant was responsible as the Customs Broker under Regulation 11 of CBLR, 2013 to verify antecedent and correctness of impo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... margin basis. All these three have acted in conscious disregard of their obligation as required from a businessman of ordinary prudence. 15. Accordingly, learned Commissioner (Appeals) had dismissed the appeals of these appellants also and upheld the order in original. Also, observed that the quantum of penalty imposed is just and proper as Section 114 of the Act provides mandatory penalty equal to value of goods and maximum upto three times the value of the offending goods. He also placed reliance on the ruling reported as 2018 (362) ELT 320 and 2014 (302) ELT 161. 16. Being aggrieved, these appellants are before this Tribunal on the following grounds:- (A) For Cargo Specialist Inc. - Learned Counsel Shri Somesh Arora appeared for the appellant and Shri Siddhartha Yadav appeared for other three appellants, have reiterated the grounds before the learned Commissioner (Appeals), which are as under:- Delay: Final hearing was held on 16.08.2018 and impugned order was passed on 29.05.2019 i.e. after more than 9 months - violative of CBEC instructions and settled case law. Cryptic order without dealing with submissions. Knowledge of offending goods is inbuilt requirement in provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SB Logistics, who stated that the appellant CHA firm has complied their obligation under Rule 11 of Customs House Agents Licensing Regulations, 2004 and there is no change in the Customs Broker Regulation, 2014 as the provision are para materia. It is further stated that as per the admitted facts the CB - M/s CSB Logistic was not having any knowledge of the malpractice if any, by the exporter. Further, there is no case of Revenue that any employee of the Custom Broker firm were hand in glove with the exporter. Learned Counsel Shri Siddhartha Yadav further urges that shipments sent earlier were auto parts (Clutch Plates, to Dubai, Germany and Malaysia, IEC and address proof were given after verification and KYC complied as required by CHA -M/s CSB Logistics. He was getting documents through an intermediary Mr. Rajbir, who rang him up about consignment on 13.09.2014 and sent papers in advance on e-mail with hard copies to be given through transporter. That freight forwarding for impugned consignment was as per their practice, outsourced to M/s Info Capital Logistics, who in turn used services of M/s Blue Bell Logistics and that CHA engaged was M/s CSB Logistics. 17. Learned Authori ..... 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