TMI Blog2021 (1) TMI 818X X X X Extracts X X X X X X X X Extracts X X X X ..... en he told them that bank related documents and authority letter could be given before carting the goods; they did not receive any documents in original; they have not cross-verified the documents submitted with any reasonable means; they never spoke to or interacted with any of the IEC holders. Where the custom Broker prima facie has some documents; the person who handed over the documents to the Broker is available; it is not alleged that the exporters were fictitious and the fraudulent persons used the high security IDs and passwords of departmental officers, the omission on the part of the Customs Broker becomes a bit less serious. Under the circumstances, there was lapse on the part of the Customs Broker, the same is not at the root ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sioner of Customs, Chennai wherein the license of the Customs Broker was revoked and a security deposit was forfeited and penalty of ₹ 50,000/- was imposed. 2. It is the case of the department that the customs broker have involved themselves in the work of a syndicate who used to obtain IEC from different parties; prepare invoices declaring the export of instant sticks, coriander seeds, tea, coffee etc. having a high drawback value; prepare check list for filing the shipping bill; on filing of the shipping bill access customs officers ID and pass word in ICEGATE to issue let export order. Revenue alleges that the appellants have failed to discharge their obligation as customs broker as required under Regulation 11(a) 11(b) 11(d) 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icense was under revocation for more than two years; the livelihood of the proprietor and the employees of the firm are seriously affected; revocation of license leading to closure of business is a serious punishment and in the facts and circumstances of the case, the same is not warranted. He relies upon Falcon Air Cargo And Travels (P) Ltd. Vs UOI - 2002 (140) ELT 8 (Del.). 4. Ld. A.R appearing for the Revenue submits that the customs broker has failed to observe due diligence in filing the documents on behalf of his clients; he did not verify the credentials of the exporters; he depended on the middlemen and also received money for the clearance and that the customs broker in his statement recorded by D.R.I has accepted the commission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the fraudulent exporters have connived with the Customs officers in obtaining let export orders even when no goods were exported in connivance with the officials of Customs. We find that the issue before the Bench is limited to the role played by the customs broker in the alleged violation. Admittedly, the customs broker had filed the check lists. If everything had gone well, they would have filed the documents also to complete the process of export. Therefore, the plea that they have only filed check list cannot be a defence to cover up lack of diligence on their part in the instant case. The appellants were expected to obtain an authorization from the exporters and the same was not done in the instant case. The original documents were not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o needs to be taken on to account. 9. We find that Tribunal in the case of Him Logistics Pvt. Ltd Vs CC, New Delhi - 2016 (338) E.L.T. 725 (Tri. Del), held that - 9 . We find that the impugned order did not make out a sustainable case for revocation of license. In the case of Setwin Shipping Agency v. CC (General), Mumbai - 2010 (250) E.L.T. 141 (Tri.-Mumbai), the Tribunal held that there is no requirement for the CHA to verify physically the premises of importer/exporter. The Tribunal also observed that it is a settled law that the punishment has to be commensurate and proportionate to the offence committed. In the present case, we notice that the punishment of revocation is not justifiable even if it is to be admitted that phys ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... olations are not so grave as to justify the revocation of the customs license. We are of the view that ends of justice will be met with the forfeiture of security deposit of ₹ 75,000/- and in addition imposition of penalty of ₹ 50,000/-. We find that the license has been under the orders of revocation / suspension for more than two years. Under the circumstances, we find that the customs broker has been sufficiently penalized. For the commission of an offence on the part of the customs broker, the livelihood of many other employees of the firm cannot be put to jeopardy. Therefore as held by this Tribunal in the case of N.T. Rama Rao Co. Vs CC, CHENNAI-VIII - 2020 (371) ELT 789 (Tri.-Chennai), we find that ends of justice ..... X X X X Extracts X X X X X X X X Extracts X X X X
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