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TMI Blog2023 (8) TMI 264X X X X Extracts X X X X X X X X Extracts X X X X ..... hus clearly contravened the provisions of various Regulations of the CBLR, 2013. The appellant, through Mr. I. Durai Murugan, have facilitated imports by persons other than the IEC holder, by misusing the IEC of M/s. Jeppiar Furnace and Steels Pvt. Ltd. and knowingly issued KK Form thereby enabling to hand over the imported goods to the transporter arranged by Mr. S. Murugan, when the Bill-of-Entry was filed in the name of M/s. Jeppiar Furnace and Steels Pvt. Ltd. Investigations have proved the culpability of Mr. S. Murugan of M/s. Sri Lakshmi Impex and how the conspiracy to smuggle huge value of cigarettes was carried out with the connivance of Mr. I. Durai Murugan representing the appellant. Though the imported goods were examined and seized in March 2016, the CHA Licence was suspended by the Commissioner of Customs on 31.01.2017 i.e., more than nine months after the initial detection of smuggling, vide Order of Suspension dated 31.01.2017. The suspension was continued vide another Order dated 23.03.2017. The Show Cause Notice, proposing revocation of licence, was issued on 07.04.2017 and the Inquiry Report was submitted on 07.07.2017 and thereafter, the order of revocation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 000/- and also imposition of penalty of Rs.50,000/-, under the provisions of Regulation 20 (7) of the Customs Brokers Licensing Regulations (CBLR), 2013. 2. The appellant had filed a Bill-of-Entry No. 4393017 dated 26.02.2016 on behalf of M/s. Jeppiar Furnace and Steels Pvt. Ltd., Chennai (IEC: 0403028752), namesake importer, for clearance of goods described as Low Melting Steel (LMS) Bundle Scrap which arrived in five 20 feet containers. The import documents namely, invoice, Bill-of-Lading, etc., were in the name of M/s. Lakshmi Impex, Madurai and the goods were reportedly sold to M/s. Jeppiar Furnace and Steels Pvt. Ltd. Royapettah, Chennai on High Sea Sale (HSS) agreement basis. 3.1 On specific intelligence, the DRI, Chennai Zonal Unit (DRI-CZU), examined this consignment. Apart from the declared goods, smuggled cigarettes valued at Rs.4.13 crore were found and seized. Consequently, investigation conducted has revealed that Mr. I. Durai Murugan, owner of M/s. India Exim Services, had filed the above impugned Bill-of-Entry on receipt of the import documents from Mr. S. Murugan of M/s. Sri Lakshmi Impex, Madurai. From the voluntary statement of Mr. I. Durai Murugan, that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... directed by Mr. S. Murugan and later, from November 2015, the cleared containers were taken to the premises of one M/s. Ananya Industries, No. 131/1a, Manali High road, Chennai-57 for segregation, whereafter the containers would be taken to the actual destination specified in the KK Form. In view of the above, it appeared to the Revenue that post customs clearance, the goods were handed over to the transporter arranged by Mr. S. Murugan with the knowledge of the CHA. 3.5 M/s. Jeppiar Furnace and Steels Pvt. Ltd. vide their letters dated 11.03.2016 and 14.03.2016, have categorically denied their involvement in the smuggling of cigarettes. 3.6 It is also seen from the records that Mr. S. Murugan, Proprietor of M/s. Sri Lakshmi Impex (IEC: 3515010068), his two sons namely, Mr. Sudalai Muthu Murugan, Director of M/s. Lakshmi Impex and Mr. M. Mayandi, were given numerous summons to appear before the investigation for enquiry and to give evidence, which were not complied with. 4. From the foregoing, it has been revealed that the appellant had colluded with unscrupulous persons and had failed to discharge their obligations as a customs Broker as envisaged under the CBLR, 2013 an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. (d) The concealment of cigarettes in the containers is the basis for suspension of Customs Broker Licence. As a Customs Broker, the appellant had filed the Bill-of-Entry No. 4393017 dated 26.02.2017 in Chennai Customs as per the documents / commercial invoice with the said description. The appellant has filed the Bill-of-Entry in the name of M/s. Jeppiar Furnace and Steels Pvt. Ltd. only on the strength of the High Sea Sale Agreement, which is an acceptable procedure in Customs. (e) The import documents viz. invoice, packing list, Bill-of-Lading, Pre Shipment Inspection Certificate, etc., describe the goods as Low Metling Steel Bundle Scrap . Mr. I. Durai Murugan, the marketing agent of the Customs Broker, has also revealed the same facts. (f) The Ld. adjudicating authority has failed to appreciate that the appellant had undertaken the clearance work in good faith that the import item was only steel scrap, which is a normal item of import through Chennai Port and further, the appellant had not noticed any discrepancies in the import documents. (g) The appellant had not contravened Regulation 11(a) inasmuch as both Mr. S. Murugan and Mr. Mayandi are existing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sioner of Cus., New Delhi [2016 (338) E.L.T. 725 (Tri. Del.)] Setwin Shipping Agency v. Commissioner of Customs (General), Mumbai [2010 (250) E.L.T. 141 (Tri. Mum.)] S.J. International v. Commissioner of C.Ex., Nagpur [2014 (300) E.L.T. 125 (Tri. Mum.)] 10.1 The Ld. Authorized Representative Shri Harendra Singh Pal (Assistant Commissioner) has submitted that the Customs Broker has clearly violated the Customs Brokers Licensing Regulations (CBLR), 2013 on many counts and so, revocation of their licence is justified; Negligence on their part in allowing unapproved persons in transacting the Customs business has resulted in smuggling of foreign cigarettes valued at Rs. 4.13 crores, by a novel modus operandi which was detected by the Directorate of Revenue Intelligence. 10.2 He has argued for confirmation of the order of the Commissioner of Customs. 11. We have considered the submissions made by both the appellant and the Revenue and have also gone through the facts obtaining in this appeal. 12. The issues that are required to be decided by us in this appeal are: - (1) Whether the revocation of Customs Broker Licence of the appellant by the Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts by persons other than the IEC holder, by misusing the IEC of M/s. Jeppiar Furnace and Steels Pvt. Ltd. and knowingly issued KK Form thereby enabling to hand over the imported goods to the transporter arranged by Mr. S. Murugan, when the Bill-of-Entry was filed in the name of M/s. Jeppiar Furnace and Steels Pvt. Ltd. Investigations have proved the culpability of Mr. S. Murugan of M/s. Sri Lakshmi Impex and how the conspiracy to smuggle huge value of cigarettes was carried out with the connivance of Mr. I. Durai Murugan representing the appellant. 16.1 The appellant, relying upon the decision rendered in the case of M/s. K.S. Sawant Co. v. Commissioner of Customs (General), Mumbai [2012 (284) E.L.T. 363 (Tri. Mumbai)], has submitted that mere signing of documents by a CHA would not prove that the clearances were undertaken by the CHA and punishment for the same could not be revocation of licence of the CHA as that would be extreme and harsh. 16.2 Our attention has also been drawn to the decisions rendered in the cases of M/s. L.M.S. Transport Co. v. Commissioner of Customs (General), Mumbai [2014 (299) E.L.T. 368 (Tri. Mumbai) and Thawerdas Wadhoomal v. Commissioner of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... MS Bundle Scrap was on the basis of various documents namely, invoice, packing list, Bill-of-Lading, Pre Shipment Inspection Certificate, High Sea Sales Agreement, etc.; that there was no delay in discharge of their duties as a Customs Broker and in maintaining up-to-date records of clearance documents. Thus, the appellant has not contravened the provisions of Regulations 11(m) and 11(k) of the CBLR, 2013. 18.2 However, the appellant has allowed Mr. I. Durai Murugan of M/s. India Exim Services to file documents in the name of M/s. Jeppiar Furnace and Steels Pvt. Ltd. without obtaining any authorization from the importer and without verifying the genuineness of the High Sea Sales Agreement, fabricated by Mr. S. Murugan of M/s. Sri Lakshmi Impex, and also issuing KK Form to the transporter for clearance of the imported goods to unauthorized persons and not to the importer. So, the contravention of Regulations 11(a), 11(b), 11(n), 11(e) are proved. 19.1 The Customs Broker Licence was suspended with effect from 31.01.2017 which was finally revoked on 05.10.2017. So, the CHA was out of business for the last more than six years. We take note of the fact that the appellant is unable ..... X X X X Extracts X X X X X X X X Extracts X X X X
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