TMI Blog2021 (10) TMI 102X X X X Extracts X X X X X X X X Extracts X X X X ..... perusal of the records, it is found that the appellants have submitted copies of PAN card, GST Registration Certificate, GSTIN ID card etc. obtained from the exporter. It is clear that exporter themselves have given a categorical submission that consignment does not contain any contraband. Under such circumstances, there is a strong case that the appellant Customs Broker had no previous knowledge of the concealment; the role of the appellant-customs broker is to be examined in this background. Agreeably, the customs broker has collected all the necessary documents to satisfy himself about the bona fides of the exporter. The only mistake or negligence on the part of the appellant-customs broker appears to be permitting an ex-employee wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ill No.6443337 dated 23.08.2019 on behalf of the exporter i.e. M/s. Syed Holdings for the purported export of glass bangles to Malaysia; examination of the consignment, on receipt of a specific intelligence, 105 kg of Ephedrine concealed in polyethylenebag/s was found concealed in the consignment; on conclusion of the investigation, the appellant s customs broker license was suspended and vide the impugned order the same was revoked. 3. Shri S. Murugappan, Learned Counsel for the appellant, submits that one Shri Shabie Mohammed handled the documents on their behalf; Shri Shabie Mohammed was working with the firm for seven years and left in February2017 and joined back in 2019; he handled the documents; his H-Card has expired and remained ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t documents on their behalf. 6. Heard both sides and perused the records of the case. We find that this is a case of misdeclaration of an export consignment. The consignment of glass bangles were declared for export to Malaysia vide the shipping bill cited above. Examination conducted on receipt of intelligence by department revealed that 105 kg of Ephedrine, a narcotic substance was concealed in the consignment. Keeping apart the omissions and commissions of the exporter in the smuggling, we are concerned with the role of the CHA is to be examined in this case. On perusal of the records, we find that the appellants have submitted copies of PAN card, GST Registration Certificate, GSTIN ID card etc. obtained from the exporter. They have a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Customs Broker had no previous knowledge of the concealment; the role of the appellant-customs broker is to be examined in this background. Agreeably, the customs broker has collected all the necessary documents to satisfy himself about the bona fides of the exporter. The only mistake or negligence on the part of the appellant-customs broker appears to be permitting an ex-employee whose H-Card has expired to file documents on their behalf. This negligence does not in itself call for a stringent action such as revocation of licence. As their negligence has resulted in admitted smuggling of narcotic substance, the penalty would have been enough deterrent wherein the prior knowledge of the customs broker about the concealment of narcotic sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 8 years, and thus been penalized in this manner. This is not to say that the trust operating between the Customs Authorities and the CHA is to be taken lightly, or that violations of the CHA Regulations should not be dealt with sternly. A penalty must be imposed. At the same time, the penalty must - as in any ordered system - be proportional to the violation. Just as the law abhors impunity for infractions, it cautions against a disproportionate penalty. Neither extreme is to be encouraged. In this case, in view of the absence of any mens rea, the violation concerns the provision of G cards to two individuals and that alone. A penalty of revocation of license for this contravention of the CHA Regulations unjustly restricts the appellant s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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