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TMI Blog2023 (10) TMI 177X X X X Extracts X X X X X X X X Extracts X X X X ..... r, Ludhiana Customs Commissionerate, vide letter Cus/SIIB/MISC/451/2021-SIIB-0/0-Commr-Cus-Ludhiana dated 07.09.2021 was received wherein it has been reported that Custom Broker has been found involved in a case of fraudulent import pertaining to M/s PS Traders Shop. No. 20/100, Turi Bazar, Near AnardanaChowk, Patiala. Details of case is as under: a In a Bill of Entry No. 3479461 dated 08.04.2021 filed by M/s. Safe Cargo Clearing Services on behalf of M/s P. S. Traders, Shop No. 20/100, Turi Bazar, Near AnardanaChowk, Patiala, Punjab holding IEC No. GAUPS9998M, for import of 14836 Kg of Aluminium Scrap under CTH 76020010 having assessable value of Rs. 12,51,524/- After issuance of Customs Out of Charge (COC), during transit, the consignment was intercepted by the Preventive Wing, CGST Commisssionerate, Ludhiana and apart from 10.300 MT Iron Scrap, 3960000 Cigarette Sticks of 100 mm length with Filters & four Alloy Wheels recovered. A case was booked and later, goods have been seized under section 110 of Customs Act, 1962. b. Certain documents such as examination reports, detention memo, statements of Customs Officers namely ShriSandeep Kumar, Inspector &Shri Rambir Singh, Supdt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... despite Summon being sent on 12.08.2021, 28.08.2021, 31.08.2021 & 11.09.2021 In this regard a complaint under Section 174-175 of Indian Penal Code. 1860 has been lodged before Chief Judicial Magistrate. Ludhiana, (e) He was duty bound to confirm the KYC of importer before filing the import documents and examination of consignment and payment of Customs duty before clearance of the consignment. The said consignment was managed to clear from Customs without examination on 09.04 202 whereas the M/s Safe Cargo Clearing Services was responsible to get the consignment examined for which documents were filed by him. M/s Safe Cargo Clearing Services has failed in his duties by submitting. signing false declaration or documents to Customs in the transaction of his business as a Customs broker &authorized representative of the importer. (f) It is pertinent to mention here that Sh. Sunil Dutt, G-card of M/s Safe Cargo Clearing Services in his statement dated 15.04.2021 tendered by him before the CGST official, has stated that he had already deleted the communication of whatsapp chat which was crucial evidence in the case and hence, cannot be trusted in any manner. It appears that he in co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g CB License number 12/CB/REG/LDH/2015 have failed to comply with the provisions of Regulation 10 of CBLR 2018 and are therefore liable for action under Regulation 14 read with Regulation 17 and 18 of CBLR, 2018, including revocation of license, forfeiture of part or whole of security & imposition of penalty Accordingly, the Commissioner of Customs, in exercise of powers conferred upon him under Regulations 16 (1) of CBLR, 2018, suspended the Customs Broker License No. 12/CB/REG/LDH/2015 vide Order issued under F.No. VIII- 13(15) Tech/ CHA/SCCS/HQRS/LDH/2015 dated 08.09.2021 (DIN 20210975NK000000C3B9) issued to Safe Cargo Clearing Services, and ordered to submit the License along with F/G/H Cards (in original) to the Deputy Commissioner (TECH), Customs Commissionerate, Ludhiana immediately. The suspension of CHA licence was continued vide order in original dated 15.11.2021 by the Commissioner, Customs, Ludhiana and later the license of the Custom Broker M/s. Safe Cargo Clearing Services 52, Rasila Nagar, opposite BBMB Power House, Chandigarh Road, Ludhiana was revoked and penalty of Rs. 50000/- has been imposed vide Order-In- Original number Comm/VG/LDH/CUSTOMS/05/2022 dated 28.06. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. Vs. Commissioner of Customs 2019 (370) ELT 510 (T). * Anax Air Services Pvt. Ltd. Vs. Commissioner of Customs, New Delhi. 10. On the other hand, Ld. DR supported the findings in the impugned order and submitted that the custom broker has failed to comply with the regulations as prescribed in regulation 10 of CBLR. He further submitted that Sunil Dutt, G-card holder of the appellant was responsible to get the consignment examined, but examination of the consignment was not conducted and he was aware that consignment was cleared without examination and payment of custom duties but he did not inform the custom department of the same. Hence, he has not performed his duty with due diligence and utmost efficiency and has not fulfilled the obligations of custom broker as envisaged in regulation 10 of CBLR, 2018. He further submits that the inquiry officer recorded the statement of Abdesh Kumar F-card holder of the custom broker and Sunil Dutt G-card holder of custom broker dated 12.04.2021 wherein they have admitted that they had not obtained any KYC documents from the actual importer i.e. PS traders. Further, Sunil Dutt admitted all the documents including the KYC were provided to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... non- compliance, shall bring the matter to the notice of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be; (e) exercise due diligence to ascertain the correctness of any information which he imparts to a client with reference to any work related to clearance of cargo or baggage. (f) not withhold information contained in any order, instruction or public notice relating to clearance of cargo or baggage issued by the Customs authorities, as the case may be, from a client who is entitled to such information (g) promptly pay over to the Government, when due sums received for payment of any duty, tax or other debt or obligations owing to the Government and promptly account to his client for funds received for him from the Government or received from him in excess of Governmental or other charges payable in respect of cargo baggage on behalf of the client; (h) not procure or attempt to procure directly or indirectly, information from the Government records or other Government sources of any kind to which access is not granted by the proper officer (i) not attempt to influence the conduct of any official of the Customs Station in any ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... LT 15 (SC) and placed on the reliance of Noble Agency Vs. Commissioner of Customs, Mumbai [ 2002 (142) ELT 84 (Tri.- Mumbai] wherein a Division Bench of the CESTAT, West Zonal Bench, Mumbai has observed : "The CHA occupies a very important position in the Customs House. The Customs procedures are complicated. The importers have to deal with a multiplicity of agencies viz. carriers, custodians like BPT as well as the Customs. The Importer would find it impossible to clear his goods through these agencies without wasting valuable energy and time. The CHA is supposed to safeguard the interests of both the importers and the Customs. A lot of trust is kept in CHA by the importers/ exporters as well as by the Government Agencies. To ensure appropriate discharge of such trust, the relevant regulations are framed. Regulation 14 of the CHA Licensing Regulations fists out obligations of the CHA. Any contravention of such obligations even without intent would be sufficient to invite upon the CHA the punishment listed in the Regulations...." We approve the aforesaid observations of the CEGAT, West Zonal Bench, Mumbai and unhesitatingly hold that this misconduct has to be seriously viewed." ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of cases, that the Customs Broker is not expected to do the impossible and is not expected to physically verify the premises of the importer or doubt the documents issued by various Governmental authorities for KYC, it is equally true that the Customs Broker is expected to act with great sense of responsibility and take care of the interests of both the client and the Revenue. It is expected to advise the dient to follow the laws and if the client is not complying, it is obligated under the Regulations to report to the Assistant Commissioner or Deputy Commissioner. Fulfilling such obligations is a necessary condition for the CB licence and it cannot be termed as 'spying for the department' as argued by the appellant before us. It has also been argued that If it sples for the department, it will lose its business. It is evident from the facts of this case, that the appellant was not only aware of the benami Bills of Entry but has actually filed them with the full knowledge that they were benami and they were filed by Anil after a case of undervaluation has been booked by DRI against him. It is afraid of losing business because it has built its business model on violators w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not complying, it is obligated under the Regulations to report to the Assistant Commissioner or the Deputy Commissioner. Fulfilling such obligations is a necessary condition for the custom broker licence and it cannot be termed as spying for the department as argued by the counsel for the appellant. 18. It has been argued that if it spies for the department, it will not lose its business. From the evidence on record, it appears that the custom broker was having the knowledge that container does not contain the scrap but something else. It is also fact that Sunil Dutt informed the CGST team after the goods were cleared and thereafter the CGST department seized the goods when the same was in transit. Therefore, there is no doubt he has helped the Custom Department to confiscate the illegal smuggled items which was cleared without payment of duty and without examination. 19. Further, we find that there is no doubt that the appellant has not performed his duty with due diligence and utmost efficiency and has connived with Sandeep Kumar inspector and Rambir Superintendent in illegally clearing the consignment having cigarette and later on deleted all the whatsapp chats/call records wi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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