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TMI Blog2023 (10) TMI 177X X X X Extracts X X X X X X X X Extracts X X X X ..... n number (GSTIN), identify of his client and functioning of his client at the declared address by using reliable, independent, authentic documents, data or information. The appellant had failed to verify the correctness of IEC, identity and whereabouts of the firms with authentic data and information thereby violating the obligations cast upon it under Regulation 10 (n) of CBLR 2018. From the evidence on record, it appears that the custom broker was having the knowledge that container does not contain the scrap but something else. It is also fact that Sunil Dutt informed the CGST team after the goods were cleared and thereafter the CGST department seized the goods when the same was in transit. Therefore, there is no doubt he has helped the Custom Department to confiscate the illegal smuggled items which was cleared without payment of duty and without examination. There is no doubt that the appellant has not performed his duty with due diligence and utmost efficiency and has connived with Sandeep Kumar inspector and Rambir Superintendent in illegally clearing the consignment having cigarette and later on deleted all the whatsapp chats/call records with their crime partners whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... during transit, the consignment was intercepted by the Preventive Wing, CGST Commisssionerate, Ludhiana and apart from 10.300 MT Iron Scrap, 3960000 Cigarette Sticks of 100 mm length with Filters four Alloy Wheels recovered. A case was booked and later, goods have been seized under section 110 of Customs Act, 1962. b. Certain documents such as examination reports, detention memo, statements of Customs Officers namely ShriSandeep Kumar, Inspector Shri Rambir Singh, Supdt. statements of Customs Brcker ShriAbdesh Kumar of M/s Safe Cargo Clearing Services, Ludhiana and Shri Sunil Dutt, G-Card holder working with M/s Safe Cargo Clearing Services, Ludhiana have been provided to this office by the CGST Commisssionerate, Ludhiana. Further, during investigation by this office statements of Shri Prabhjot Singh, proprietor of M/s P. S. Traders, Patiala, Custom Broker ShriParamjit Singh, G-Card holder of M/s DAS Logistics Pvt. Limited, Ludhiana, representative of Shipping Line and others have been recorded under Section 108 of the Customs Act, 1962, c. In this case, it has been seen that the said consignment was marked for 50% examination, however was cleared from the Customs Area ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laration or documents to Customs in the transaction of his business as a Customs broker authorized representative of the importer. (f) It is pertinent to mention here that Sh. Sunil Dutt, G-card of M/s Safe Cargo Clearing Services in his statement dated 15.04.2021 tendered by him before the CGST official, has stated that he had already deleted the communication of whatsapp chat which was crucial evidence in the case and hence, cannot be trusted in any manner. It appears that he in connivance with other accused managed to illegally clear the consignment having Cigarettes and later on deleted all the whatsapp chat/ call records with their crime partners. (g) In the instant case, Sunil Dutt did not persuade the importer to deposit Customs duty and examination of consignment. Also, warehouse file for issuance of Gate pass was. prepared by him, however he did not come forward to get issuance of gate pass. Though, he was responsible to get the consignment examined, examination of the said import consignment was not conducted. Hence, M/s Safe Cargo Clearing Services has not performed his duty with due diligence and with utmost efficiency and has not fulfilled the obligations of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... G/H Cards (in original) to the Deputy Commissioner (TECH), Customs Commissionerate, Ludhiana immediately. The suspension of CHA licence was continued vide order in original dated 15.11.2021 by the Commissioner, Customs, Ludhiana and later the license of the Custom Broker M/s. Safe Cargo Clearing Services 52, Rasila Nagar, opposite BBMB Power House, Chandigarh Road, Ludhiana was revoked and penalty of Rs. 50000/- has been imposed vide Order-In- Original number Comm/VG/LDH/CUSTOMS/05/2022 dated 28.06.2022. Aggrieved by the said order, the appellant has filed the present appeal. 4. Heard both the parties and perused the record. 5. Ld. Counsel appearing for the appellant submitted that the impugned order revoking the CHA licence and forfeiting security amount and imposing the penalty of Rs. 50,000/- are not sustainable in law as the same has been passed without properly appreciating the facts and the law and custom broker regulation, 2018. He further submitted that the inquiry conducted by the Deputy Commissioner Sandeep Kamboj is in violation of regulation 17(4) of CBLR, 2018 as the appellant has not been given the opportunity to cross examine certain persons whose statements wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty with due diligence and utmost efficiency and has not fulfilled the obligations of custom broker as envisaged in regulation 10 of CBLR, 2018. He further submits that the inquiry officer recorded the statement of Abdesh Kumar F-card holder of the custom broker and Sunil Dutt G-card holder of custom broker dated 12.04.2021 wherein they have admitted that they had not obtained any KYC documents from the actual importer i.e. PS traders. Further, Sunil Dutt admitted all the documents including the KYC were provided to him by Sandeep Kumar, inspector customs and he never contacted the actual importer during and after the clearance of the consignment which is in violation of regulation 10(n) of CBLR, 2018. 11. Ld. DR further submits that the custom broker consciously owned deeds and acts done by his employees i.e. G-card holder, Sunil Dutt by way of furnishing a bond dated 14.05.2018. 12. Ld. DR further submits that cross examination was denied because no cogent reasons were given for seeking cross examination at the belated stage. She further submitted that revocation of licence and imposition of penalty has been imposed by the adjudicating authority after following the proced ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of any duty, tax or other debt or obligations owing to the Government and promptly account to his client for funds received for him from the Government or received from him in excess of Governmental or other charges payable in respect of cargo baggage on behalf of the client; (h) not procure or attempt to procure directly or indirectly, information from the Government records or other Government sources of any kind to which access is not granted by the proper officer (i) not attempt to influence the conduct of any official of the Customs Station in any matter pending before such official or his subordinates by the use of threat, false accusation, duress or the offer of any special inducement or promise of advantage or by the bestowing of any gift or favour or other thing of value. (j) not refuse access to, conceal, remove or destroy the whole or any part of any book, paper or other record, relating to his transactions as a Customs Broker which is sought or may be sought by the Prinopal Commissioner of Customs or Commissioner of Customs, as the case may be; (k) maintain up to date records such as bill of entry, shipping bill, transhipment application etc all co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of both the importers and the Customs. A lot of trust is kept in CHA by the importers/ exporters as well as by the Government Agencies. To ensure appropriate discharge of such trust, the relevant regulations are framed. Regulation 14 of the CHA Licensing Regulations fists out obligations of the CHA. Any contravention of such obligations even without intent would be sufficient to invite upon the CHA the punishment listed in the Regulations.... We approve the aforesaid observations of the CEGAT, West Zonal Bench, Mumbai and unhesitatingly hold that this misconduct has to be seriously viewed. 29. Similarly, the view taken by the High Court of Madras, in Sri Kamakshi Agency Vs Commissioner of Customs, Madras -2001 (129) ELT 29 it has been held that: the grant of licence to act as a Custom House Agent has got a definite purpose and intent. On a reading of the Regulations relating to the grant of licence to act as Custom House Agent, it is seen that while Custom House Agent should be in a position to act as agent for the transaction of any business relating to the entry or departure of conveyance or the import or export of goods at any customs station, he should also ensu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch obligations is a necessary condition for the CB licence and it cannot be termed as 'spying for the department' as argued by the appellant before us. It has also been argued that If it sples for the department, it will lose its business. It is evident from the facts of this case, that the appellant was not only aware of the benami Bills of Entry but has actually filed them with the full knowledge that they were benami and they were filed by Anil after a case of undervaluation has been booked by DRI against him. It is afraid of losing business because it has built its business model on violators who, it does not want to upset by reporting to the department. Therefore, we find no reason to show any leniency towards the appellant. At any rate, once violation is noticed, it is not for the Tribunal to Interfere with the punishment meted out by the disciplinary authority, viz., the Commissioner unless it shocks our conscience. In this case, it does not. 15. Further, we find that in the present case Sunil Dutt G- card holder in connivance with other accused managed to illegally cleared the consignment having cigarette and later deleted all the whatsapp chat/call records in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... formed the CGST team after the goods were cleared and thereafter the CGST department seized the goods when the same was in transit. Therefore, there is no doubt he has helped the Custom Department to confiscate the illegal smuggled items which was cleared without payment of duty and without examination. 19. Further, we find that there is no doubt that the appellant has not performed his duty with due diligence and utmost efficiency and has connived with Sandeep Kumar inspector and Rambir Superintendent in illegally clearing the consignment having cigarette and later on deleted all the whatsapp chats/call records with their crime partners which clearly shows that he has not fulfilled the obligation under regulation 10 of CBLR, 2018 but his act and conduct does not warrant the imposition of extreme penalty of revocation of custom broker licence depriving him of his livelihood. But certainly his conduct warrants, the imposition of penalty and forfeiture of security deposit. 20. In view of our discussion above, after considering the entire facts and circumstances of the case, we hold that revocation of custom broker licence of the appellant is not warranted and we set aside the r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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