Home Case Index All Cases Customs Customs + AT Customs - 2017 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (10) TMI 473 - AT - CustomsRevocation of CHA license - forfeiture of security deposit - liability of principal for the acts of his agents - Principle of Vicarious Responsibility - alleged role played by the appellant in fraudulent exports carried-out under claim of undue export benefits - Held that: - it is evident that the shipping bills for the fraudulent export consignments were filed by the appellant-CHA which helped the unscrupulous persons to play the fraud on the exchequer. It is also evident that the appellant has never met and was not aware about the actual IEC holders whose number was used by Sh. Krishnan Kumar Garg in filing the documents. Sh. Garg has further admitted that he signed the documents without verifying the credentials of exporter. Without any authorization by the firms involved in the export, the appellant-CHA has filed the export documents resulting in undue claim for drawback/DEPB. It is further on record that export documents were obtained through the export facilitators/kingpins in the fraud rather than the actual IEC holder. As per the Principle of Vicarious Responsibility, a Principal is liable for all acts and omissions of his agent. In the present case, we note that Sh. Krishnan Kumar Garg was a G.card holder and employee of the appellant during the period when the shipping bills for the fraudulent exports were made. Sh. Garg was an authorized signatory of the appellant, hence the signatures appended by him on the export documents will necessarily have to be held as affixed by him in the course of normal business and on behalf of appellant. After having authorized Shri Garg to sign the documents on behalf of the appellant, the appellant cannot escape the vicarious responsibility for the acts and omissions of Sh. Garg. Reliance placed in the case of Rajendra Purohit Vs Union of India [2011 (11) TMI 333 - Gujarat High Court], where it was held that Regulation 19 (8) prescribes that CHA should exercise such control/supervision as may be necessary to ensure proper conduct of such employees in transaction of business as CHA and he be held responsible for all acts or omissions of his employees in regard to their employment. The contraventions of various regulations stand established against the appellant - appeal dismissed - decided against appellant.
|