TaxTMI 
TaxTMI 
2014 (12) TMI 771
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....nce of M/s. Dhakane & Co., CHA No. 11/944 and also ordered forfeiture of entire amount of security deposit of the said CHA firm. Aggrieved of the same, the appellant CHA is before us. 2. The facts relating to the case are briefly as follows: 2.1 The Directorate of Revenue Intelligence, seized a consignment of 86510 Kgs. of "Red Sanders" at Nhava Sheva on 22/07/2010. The said consignment was attempted to be exported out in the name of M/s. Leed Impex, Mumbai, through JNPT. The modus operandi adopted was that a consignment of M.S. Pipes was stuffed in container bearing No. TTTNu-2188852 in a private godown near Rasayani, Panvel, where the Customs clearance formalities were completed by one Shri Deepak Dariyalal Sejpal. After examination....
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....n employee duly approved by the Deputy Commissioner of Customs. In the present case, the CHA had arranged a person Shri Deepak Dariyalal Sejpal for the export documentation by allowing the usage of the CHA licence and therefore, they had violated the provisions of Regulation 13(b) of the CHALR 2004. 2.3 The third charge against the CHA is that as per the Regulation 13(d), the CHA shall advise his client to comply with the provisions of the Customs Act and in case of non-compliance, shall bring the matter to the notice of the Deputy Commissioner of Customs/Assistant Commissioner of Customs. In the present case, the consignment of 8610 Kgs of red sanders was attempted to be smuggled out in the name of M/s. Leed Impex, Mumbai, and the conta....
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....egation that the CHA did not obtain the authorisation from the exporter is incorrect. It is submitted that the export documentation was given by the exporter and in terms of the export documents submitted the shipping bill was filed and therefore, the CHA cannot be alleged with violation of Regulation 13(b) inasmuch as the work was entrusted to Shri Bala Baburao Jadhav, an employee of the CHA firm for completing the export documentation and the work was undertaken by the said Shri Bala Baburao Jadhav. Shri Jadhav had prepared the check list, but he did not sign the export documents. Another employee, Shri Vinod Shinde had accompanied Shri Deepak Dariyalal Sejpal to M/s. M/s. Ashte Logistics Pvt. Ltd. to attend the export consignment pertain....
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....n and also admitted that this fact was known to Shri Ashok Pandurang Dhakane, Director of the CHA firm. Therefore, it was with the knowledge and connivance of the CHA firm, the transaction has taken place. Therefore, violation of Regulation 13 (b) stands clearly established. He also submitted that subsequent authorisation received from M/s. Leed Impex was found to be a forged one and the authorisation letter of M/s. Leed Impex had been fabricated by the CHA which also shows their involvement in undertaking the illegal transaction. Therefore, it is his submission that the charges against the CHA are clearly proved. Reliance is placed on the decision of this Tribunal in the case of Nikhil Shipping Agency Vs. CC (General), Mumbai - 2012 (283) ....
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..../s. Dhakane & Co. and it was done with the knowledge of Director Shri Ashok Pandurang Dhakane of the CHA firm. This is also corroborated by the statement of Shri Bala Baburao Jadhav and Shri Vinod Shinde, employees of the appellant CHA firm and therefore, the charge of contravention of Regulation 13 (b) of having transacted the business through unauthorized persons also stands proved. 5.3 As regards the third charge of contravention of Regulation 13 (d), it is clear that the CHA never dealt with the exporter or the persons authorised by the exporter but dealt with another person, viz., Shri Deepak Dariyalal Sejpal. Therefore, the question of advising the client to comply with the provisions of the Act would not arise at all. In the light....