TMI Blog2019 (1) TMI 838X X X X Extracts X X X X X X X X Extracts X X X X ..... n a document. If one interprets Regulation 13(o) reasonably in the light of what the CHA is expected to do, in the normal course, the duty cast is merely to satisfy itself as to whether the importer or exporter in fact is reflected in the list of the authorized exporters or importers and possesses the Importer Exporter Code (IEC) Number. There is nothing in the Regulations nor in the Customs Act which can cast such a higher responsibility as are sought to be urged by the Revenue. In the absence of any indication that the CHA concerned was complicit in the facts of a particular case, it cannot ordinarily be held liable. The judgment of the Andhra Pradesh High Court in Commissioner of Customs Central Excise v. H.B. Cargo Services [201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on investigation and inquiry were found to be non-existent. The CHA has replied to the show cause notice and contested the proceedings arguing that it facilitated the consignments in question at the behest of one of its employees Mr. Sanjay Panwar, who had in the past too, brought clients. It appears that in the course of investigations, the Revenue authorities found that the concerned exporters, were fictitious and that the consignments in truth were smuggled and also highly over-valued. In these circumstances, the penalty of ₹ 50,00,000/- was imposed on the CHA under Section 114 of the Customs Act, 1962. 3. The CESTAT by its impugned order allowed the CHA s appeal; while doing so, it relied upon the judgment in Falcon India v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... export as CHA and they work merely on the basis of the documents provided to them by the concerned party. They have also argued that in the present case the goods referred for examination were examined by the customs officers and cleared for export and that they had no expertise on in valuation of the goods nor they could physically count them prior to export and therefore they did not willfully co-operated with the exporters for the fraudulent exports. All these are alibis to cover up their failures once the offence being perpetuated by them was detected and their game plan exposed, they have resorted to such explanations in self defence. 67. The investigations into the matter have conclusively established and proved beyond any measu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly equivalent but stricter punitive liabilities, more so on account of the fact of his being a CHA and licensed in term of CHALR Rules, 2004 under the Customs Act. He has deliberately failed to produce/unravel his co-conspirators and fraudsters in the matter. 6. The Regulation in question reads as follows : 13. Obligations of Customs House Agent.- A Customs House Agent shall - xxx xxx xxx (o) verify antecedent, correctness of Importer Exporter Code (IEC) Number, identity of his client and functioning of his client at the declared address by using reliable, independent, authentic documents, data or information. 7. This court is of the opinion that the impugned order is justified in the facts and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 and 9 facially show that the CHA played an active role. It is in these circumstances that in para 15 (which was relied upon by the Revenue), the Court made the following observations : 15. While the punishment imposed on the CHA has to be commensurate with the gravity of the proved acts of misconduct as, on revocation of his license, the CHA would suffer, it must not be lost sight of that, though it is the right of a citizen to carry on his business or profession, it is subject to reasonable restrictions and conditions which, in the present case, are stipulated under the CHALR [ Worldwide Cargo Movers 2010 (253) E.L.T. 190 ]. As noted hereinabove, blank shipping bills were issued by the partner and authorized representative of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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