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2022 (3) TMI 287 - AT - CustomsLevy of penalty on the appellants u/s 114 of the Customs Act, 1962 - Customs Broker firm - smuggling - evidence to prove that the customs broker had actively abetted the exporter in the illegal export of red sanders or not - only allegation against the appellants herein is that they lent their digital user ID and password to M/s.Bro Logistics to file shipping bill for a monthly consideration - violation of principles of natural justice - HELD THAT:- It has to be stated that on perusal of the order passed by the adjudicating authority, it is seen that the adjudicating authority has taken the view that leasing the User ID and Password of a Customs Broker can be considered as violation under CBLR, 2013 only. It is held that for such violation the Customs Broker cannot be held to have abetted in the attempt to smuggle red sanders. The decision in the case of K.V. PRABHAKARAN VERSUS COMMISSIONER OF CUSTOMS, CHENNAI [2017 (10) TMI 1446 - MADRAS HIGH COURT] has been relied by the Commissioner (Appeals) to arrive at the conclusion that the matter has to be remanded to the original authority for reconsidering the issue of imposing penalty under Section 114 of the Act ibid. A Custom Broker is supposed to safeguard the interests of both exporters and the Customs. It is not possible to manage the huge volume of transactions in each port without some trust on the Customs Broker by the officers of Customs. Any act facilitating an attempt for export of prohibited goods would fall under Section 114 of the Act, ibid - appellants has relied upon the decision in the case of KAILASH BAHIRU JADHAV VERSUS COMMISSIONER OF CUSTOMS (EXPORT) [2019 (7) TMI 1061 - CESTAT MUMBAI] to argue that the violation if any would fall only under CBLR, 2013 and not under Section 114 of Customs Act, 1962. The facts in the said case are that appellant therein had filed export documents and later revealed that there was overvaluation of goods which facilitated the exporter in claiming excess drawback. In para-6 of the said decision, the Tribunal held that for all contraventions in every case, the customs broker cannot be proceeded against under Section 114 of the Act, merely because he acted as an agent - The facts in the above case reveal that the allegation therein was of filing export documents in which the goods were overvalued. Needless to say that value of the goods are entered in the shipping documents as provided by exporter and the Customs Broker / CHA would have minimal or negligible role to play in the valuation of goods. The facts of the said case being entirely different, it is not applicable to the present situation wherein the allegation is lending of Customs Broker Digital ID and password to unauthorised person for monetary consideration. There are no merit in the appeals of the appellant - appeal dismissed.
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