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TMI Blog2024 (4) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... tion or quantity was also called into question. It is apparent that, in the absence of evidence to the contrary, the appellant was not responsible for ascertainment of value or declaration of value. There is nothing on record to indicate that undue benefits were received by them either. The appellant was found to have contravened the obligation to advise compliance with Customs Act, 1962 and to report non-compliance. Value, being a contractual element, is convergence of intent in monetary terms; it can be limitless but, for the purposes of assessment, is limited to a conceptual framework that is rarely without controversy when disputed. An adjudicatory finding of overvaluation is based on certain parameters which has consequence in law with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of the licence, as well as forfeiture of security deposit, under regulation 20 and imposition of penalty under regulation 22 of Customs Broker Licencing Regulations, 2013 in connection with exports of textile articles by M/s Mehra Overseas, effected under claim for drawback, that were allegedly overvalued and mis-declared. It would appear that proceedings for revocation, and other detriments, under Customs Broker Licencing Regulations, 2013 had been initiated following completion of adjudicatory proceedings against the goods, the exporter and the customs broker by resort to confiscation and penal provisions in Customs Act, 1962. 2. The notice dated 25th January 2019, issued under Customs Broker Licencing Regulations, 2013, alleged breach ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n all in which claim for drawback was only to the extent of ₹ 21,31,000. It was pointed out also that the Tribunal, in Geeta Clearing and Forwarding Agencies Ltd v. Commissioner of Customs (General), Mumbai [2019-TIOL-1224-CESTAT MUM] and in Setwin Shipping Agency v. Commissioner of Customs (Chennai VIII) [2021-TIOL-50-CESTAT-MAD], had considered several mitigating circumstances to decry the imposition of penalties. 5. Learned Authorised Representative relied upon the statement of the employee to contend that the appellant was complicit in the attempt to mis-declare the goods. It was his contention that the appellant had had no communication with the exporter and, instead, dealt with a middle man. It was pointed out that there was gro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... does not add for enhancing gravity of breach but merely conjoins. 8. Another charge is the failure to exercise due diligence in ascertaining correctness of information imparted to a client. On this, too, there is no demonstrable evidence. The offence is of overvaluation and it is well nigh impossible to engage in conjecture that any information imparted by the appellant had influenced the overvaluation. That leap of assumption is far too much of overreach; indeed, it would appear that there is lack of application of mind in identification of alleged breach with reference to expectations implicit in the obligation. Furthermore, just as in relation to the earlier charge, this one too is of tertiary consequence to the obligation that we now tu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heme having been master-minded by one or more beneficial owners taking recourse to documentation made available by exporters on record. There was a time when Customs Act, 1962, in section 2(20), recognised exporters solely as inclusive of any owner or any person holding himself out to be exporter and only in relation to any goods between entry for export and actual export. Inevitably, this always did, and continues to, exclude any transactions which precedes the filing of shipping bills under section 50 of the Customs Act, 1962 and restricted to the owner or any person holding himself out to be an exporter. Subsequently, by amendment of 2017, the term encompassed 'beneficial owners' too. These definitions do not exist in isolation f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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