2018 (6) TMI 82

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.... the purpose of disposing the present appeal are:- 1. The department got information about a syndicate to have been engaged in gross overvaluation of exports to avail higher / undue and ineligible drawback benefits. In furtherance thereof, an action was enunciated by the officers of DRI Mumbai Zonal Building. Some documents were retrieved in respect of consignments exported to Saudi Arabia, Sweden, etc., from ICD Dhannad. Based on the documents, one container bearing number INKU5619469, pending export at Nheva Sheva Gateway Port was identified and was put on hold for examination. The goods in this container were meant for export to M/s Declare International General Trading, Dubai, UAE under 05 (five) Shipping Bills in the name of M/s VJM....

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....ent of redemption fine of Rs. 10 lakhs, provided the option was to be exercised within one month of the said order. The drawback claim of Rs. 45,19,525/- in respect of five impugned Shipping Bills, all dated 27.05.2013, were ordered to be restricted to eligible amount of Rs. 11,92,388/-, a penalty of Rs. 10 lakhs was imposed in view of Section 114, Sub-section 3 of the Customs Act on all the noticees and additional penalty of Rs. 10 lakhs under Section 114 (A)(a) was imposed on two of the notices, that is M/s VJM Infra Projects Pvt. Ltd. and Kirath Shrimankar. 4. The Commissioner (Appeals) in his order under challenge has held that the appellant, being CHA, had complete knowledge of overvaluation of export goods and was also aware of fra....

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....:- (i) It is appellant's own case that he handled the export clearances of 23 exporters including Shri Kirath Shrimankar of Mumbai with whom the appellant is alleged to have conspired for the alleged evasion. This clarifies that the appellant is an experienced CHA, and is, therefore, well aware of all the provisions relating to him including the CHA's obligations as enshrined under Rule 11 of Customs Brokers Licensing Regulations, 2013. In accordance thereof, CHA is duty-bound to advise the client to comply with the provisons of the Act and the regulations diligently ensuring the imparting of correct/relevant information to the client for clearance of cargo or baggage. If there is any non compliance by the client, it is the duty of CHA, ....

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....in presence of the CHA, rather the consignment on hold was checked in the presence of the appellant himself. The High Court of Kolkata in the case High Court of Delhi in Asian Cargo Services vs. Commissioner of Customs, 2014 (302) ELT 161 (Delhi), has held that the role of CHA does not come to an end till the goods are stuffed and the containers got sealed. His responsibility comes to an end only when the sealed containers are moved out of his supervision. In the given circumstances, I opine that the Commissioner (Appeals) has rightly held about the appellant's plea to be nothing but an eye-wash. The appellant's plea that he was never concerned with the goods illegally exported, being merely an agent of the exporter is nothing but an eye-wa....