TaxTMI 
TaxTMI 
2024 (8) TMI 1061
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.... 10(a), 10(b), 10(d), 10(e), 10(f), 10(k) & 10(n) of CBLR 2018. (iii) I order for surrender of photo-identity card issued in Form-F by the Customs Broker Shri Prakhar Gupta under proviso to Regulation 17(8) of CBLR, 2018." 1.2 Appeal No. C/70439/2022 is directed against Order No. Order No. 02/COMMR./CUSTOMS/LKO/2022-23 dated 12.07.2022 of the Commissioner Customs (Preventive) Lucknow. Vide the impugned order following has been held "ORDER In exercise of powers conferred upon me under the provisions of regulation 16(2) of CBLR, 2018, I hereby continue the suspension of Customs Broker License No. 05/CB/REGULAR/KNP/2016 dated 28.09.2016 (PAN:ASLPG5339H) issued to Shri Prakhar Gupta, 117/H-2/115, Pandu Nagar, Kanpur-208025,' with immediate effect till further orders." 2.1 Appellant is holding a Customs Broker License No. 05/CB/REGULAR/KNP/2016 dated 28.09.2016 (PAN: ASLPG5339H) issued by the Commissioner of Central Goods and Service Tax, Kanpur. The Customs broker is registered under Regulation 7(3) of Customs Broker Licensing Regulation, 2018 (here-in-after referred as 'CBLR, 2018') to work in Customs Commissionerate - New Delhi. 2.2 Investigations were taken again....
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....r No.29/ZR/PROHIBITION/POLICY/2022 dated 26.04.2022 holding as follows: "ORDER (i) I hereby prohibit the Customs Broker License No. 05/CB/Regular/KNP/2016 (PAN ASLPG5339H) valid upto 27.09.2026 of M/s Prakhar Gupta from working in the all station of Customs under Delhi jurisdiction (Port and Airport & ACC) with immediate effect under Regulation 15 of CBLR 2018. (ii) M/s Prakhar Gupta is directed to surrender all the original Customs Pass issued to their employee/ partners/directors immediately. (iii) Further forward the above case to Office of Commissioner of Customs. Kanpur/Lucknow(parent Commissionerate) for necessary action under Regulation 16 and/or Regulation 17 of CBLR 2018. 9. This order is being issued without prejudice to any other action that may be taken against the CB or any other person(s)/ firm(s) etc under the provisions of the Customs Act, 1962 and Rules/Regulations framed there under or any other law for the time being in force for the present or any other past violations committed by them" 2.4 Consequently for contravention of Regulations 10(a), 10(b), 10(d), 10(e), 10(f), 10(k) & 10(n) of the CBLR, 2018 vide Order No.01/COMMR./CUSTOMS/LKO/2022-23 dated ....
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....dge and consent of the CB. Appellant has contravened the provisions of Regulation- 10 (a) of the CBLR, 2018 * As per CBLR, 2018, it is obligatory on part of the CB to get such authorization from the Importer and to authorize his G Card holder for examination of such consignment before Customs authorities, to which he failed. Appellant has contravened the provisions of Regulation- 10 (b) of the CBLR, 2018 * Appellant was required to advise his clients about the provisions of the relevant Acts, Rules & Regulations while import of goods. Appellant failed to observe and has violated the obligations cast upon him under CBLR, 2018 by filing a B/E violating the laid down procedures in respect of such prohibited goods which were not permitted for import into India and cannot be cleared by Customs authorities. Appellant has thus contravened the provisions of Regulation- 10 (d) of the CBLR, 2018. * Appellant overlooked the laid down procedures for handling and submission of documents for import of impugned goods with his client and other stakeholders and failed to ascertain the correctness of information in relation to filing of Bill of Entry & other documents in relation to clearance ....
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.... 15. Prohibition.- Notwithstanding anything contained in these regulations, the Principal Commissioner or Commissioner of Customs other than those referred to in regulation 7 may prohibit any Customs Broker from working in one or more sections of the Customs Station, if he is satisfied that such Customs Broker has not fulfilled his obligations as laid down under regulation 10 in relation to work in that section or sections: Provided that the period for which any Customs Broker may be prohibited from transacting business in one or more of the Customs Stations shall not exceed one month from the date of such prohibition: Provided further that where the license of the Customs broker is suspended as a consequence to prohibition, the time period specified in regulation 16, shall be reckoned from the date of such suspension From Regulation 15, it is clear that the time period of the prohibition shall not exceed one month from the date of prohibition i.e. from 26.04.2022. After one month from prohibition, the Customs Broker might transact their business in the jurisdiction of Delhi Customs Commissionerate. Meantime, consequence to prohibition order dated 26.04.2022, the suspension....
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....), (e), (f), (k) & (n) of CBLR, 2018, I take one by one Regulation. (i) Regulation 10(a)of CBLR, 2018: - obtain an authorisation from each of the companies, firms or individuals by whom he is for the time being employed as a Customs Broker and produce such authorisation whenever required by the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be. In the instant case, Mr. Prakhar Gupta has stated that he does not know the importer and the said BOE was filed in the name of his licence. The importer denied of having any contact/agreement/dealing with Shri Prakhar Gupta, which means, the impugned consignment was attempted for the clearance without obtaining the requisite authorization by Shri Prakhar Gupta from the importer Further, I find that the two firms, namely, Ms Prakhar Gupta and M/s Goodwings are in business since 2018-19 under mutual agreement. As per statement dated 21.03.2022 of Shri Awadhendra Kumar, he has been filing papers for clearance of import and export consignments on behalf of Customs Broker M/s Prakhar Gupta since 2018-19 as per mutual consent and agreement. In this regard, as para 2.11 of Order-in-Original dated 28.03.20....
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.... with the provisions of the Act, other allied Acts and the rules and regulations thereof, and in case of 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. In the present case before me, I find that it was obligatory on part of M/s Prakhar Gupta to advise his client M/s JCS Botanicals about the provisions of the relevant Acts and Rules & Regulations while import of goods. As per Plant quarantine Order, 2003, the 'Direct Root Crocus (Crocus Sativus L)', Salab (DactylorhizaHatagirea D) and Shikakal (Postinaca Sativa L) are not allowed to be imported into India but they imported these items. Further, dried plant material of Gulgafiz (Gentiana Olivieri G) for medical purpose is allowed to be imported only from China, but, in the instant case, the origin of country is Afghanistan In the instant case, M/s Prakhar Gupta failed to observe and has violated the obligations cast upon him under CBLR, 2018 by filing a B/E violating the laid down procedures in respect of such prohibited goods which were not permitted for import into India and cannot be cleared by Customs authorities in v....
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.... of Regulation 10 (f) of the CBLR, 2018. (vi) Regulation 10 (k) of CBLR 2018: maintain up to date records such as bill of entry, shipping bill, transshipment application, etc., all correspondence, other papers relating to his business as Customs Broker and accounts including financial transactions in an orderly and itemised manner as may be specified by the Principal Commissioner of Customs or Commissioner of Customs or the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be. In the instant case, I find that M/s Prakhar Gupta has failed to maintain up to date records such as bill of entry and other documents in respect of the impugned import consignment and has attempted unsuccessfully to subvert the accountability for failure to comply with the provisions of relevant provisions made in this regard Further, I also find that Customs Broker Shri Prakhar Gupta and Shri Awadhenra Kumar of M/s Goodwings Maritime Pvt. Ltd. mutually agreed to work together. Shri Prakhar Gupta does not even know anything about impugned consignment and imported goods, so, non-maintenance of statutory records is explanatory per se. Thus, Shri Prakhar Gupta of Ms Pr....
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....signment was found improper. I believe that such behavior from an educated person, who is licensed to work with government for smooth functioning of import / export, is not acceptable. In this case, 1 am of the view the BOE No.7368812 dated 04.02.2022 pertaining to the importer M/s JCS Botanicals was filed in the name of M/s Prakhar Gupta through his login ld and password. Thus, I find that the role of Customs Broker is highly unsatisfactory as the Custom Broker failed to comply with the obligations imposed upon him under the provisions of Regulation 10 of the CBLR, 2018 and failed to discharge his duties as a Customs Broker. I totally agree with the Inquiry report submitted by the Assistant Commissioner of Customs, CCSI Airport Lucknow and find that M/s Prakhar Gupta, Customs Broker has contravened the Regulations 10(a), 10(b), 10(d), 10(e), 10f(f), 10/(k) & 10(n) of CBLR, 2018 12.10. Now, I want to discuss here the provisions of Regulation 14 of CBLR 2018. For the sake of brevity, I reproduce the same as below:- 14. Revocation of licence or imposition of penalty- The Principal Commissioner or Commissioner of Customs may, subject to the provisions of regulation 17, revoke th....
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....d at ICD Jhattipur, Panipat. He maintained that his customs broker login Id and password were somehow leaked and M/s Goodwings Maritime Pvt. Ltd. filed the subject bill of entry through his credentials, in the name of Customs Broker M/s Prakhar Gupta. He also submitted that he informed the Customs authorities of the illegal import vide bill of entry no.7368812 dated 04.02.2022, through e-mail dated 21.02.2022 Poring over the documents available on record, I am of the opinion that the party's plea that he himself informed the Customs official through e-mail dated 21.02.2022 as soon as he came to know about it, is an after-thought and concocted find that Shri Prakhar Gupta, in his statement dated 04.03.2022, stated that the importer M/s JCS Botanicals, New Delhi and Shri Awadhendra Kumar (one director of Ms Goodwings Maritime Pvt. Ltd) contacted him on 21.02.2022 and told him about the incident. I am of the opinion that M/s Goodwings Maritime Pvt. Ltd. had no reason to contact the party Shri Prakhar Gupta on 21.02.2022as the subject bill of entry was filed through Shri Prakhar Gupta's credentials. Shri Prakhar Gupta in his said statement, has also accepted to have received ....
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....the party Shri Prakhar Gupta has stated that Customs Broker M/s Prakhar Gupta and Ms Goodwings Maritime Pvt. Ltd., have mutual understanding and are working hand in glove for all Customs related work. The Bill of Entry no. 7368812 dated 04.02.2022 was filed with the party Shri Prakhar Gupta's credentials using his ID and digital signature and Shri Prakhar Gupta, himself gave his credentials to M/s Goodwings Maritime Pvt. Ltd. I find that this a modus operandi adopted by the party Shri Prakhar Gupta to repudiate when some untoward incidence like present case comes into light. I find that the party Shri Prakhar Gupta has rendered himself liable for action under Regulation 14 of CBLR, 2018. I also find that the party Shri Prakhar Gupta has rendered himself liable for action under Regulation 18 of CBLR, 2018." 4.4 From the plain reading of the impugned order holding that Appellant have contravened the provisions of Regulation 10 (a), (b), (d),(e),(f),(k) & (n) of the CBLR, 2018 we are constrained to observe that the same is nothing but dittoing of the findings recorded in the inquiry report without any application of judicial mind or thinking to regulation contravened and the fa....
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....s to the customs broker in this case through his email address "[email protected]" to email "[email protected]" of M/s Goodwings Maritime Pvt. Ltd. the clearing agent or customs broker; that he does not have the copies of the documents; that he is not sure whether M/s Goodwings Maritime Pvt. Ltd. the clearing agent/customs broker and Prakhar Gupta, the Customs Broker are same or not, but he sent the documents on the said email address as provided by Customs Broker Prakhar Gupta * Statement dated 04.03.2022 of Shri Prakhar Gupta:- In his statement dated 04.03.2022, Shri Prakhar Gupta S/o Shri Pankaj Kumar Gupta, 117/H-2/115, Pandu Nagar, Hans Nagar, Kanpur Nagar Uttar Pradesh 208005 (CHA No. 05/CB/REGULAR/KNP/2016) & (ASLPG533HCH003), on being shown copy of the letter dated 21.02.2022, authorizing therein Shri Sanjay Kumar, stated that though the signatures on the same seems similar to my signature but he had not signed any such letter and the same had not been issued by him; that he does not know anything about this letter; that he cannot say who has signed this letter; that he does not have the original of this letter; that a consignment under bill of entry....
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....e last six months he is taking care of his father in Kanpur and looking after his business there and he is visiting Delhi about after six months; that the importer and Shri Awdhendra Kumar of M/s Goodwings Maritime Pvt. Ltd contacted him on and after 21.02.2022 and told him about this matter; that only the importer and/or Shri Awdhendra Kumar of M/s Goodwings Maritime Pvt. Ltd. can tell about this import consignment and he cannot tell anything about it. * Statement dated 07.03.2022 of Shri Awadhendra Kumar: In his statement dated 07.03.2022, Shri Awadhendra Kumar inter-alia stated that he is one of the two directors of M/s Goodwings Maritime Pvt. Ltd. H.No. 265, Flat No. FF, Bhuyia Chowk, Mehrauli South Delhi-110030 that M/s Goodwings Maritime Pvt. Ltd. is engaged in the business of freight forwarding and clearance of import and export goods; that the consignment under Bill of Entry No. 7368812 dated 04.02.2022 was filed neither by me nor by M/s Goodwings Maritime Pvt.; that the documents of this consignment were received by me on behalf of Customs Broker M/s Prakhar Gupta; that he personally work on behalf of M/s Prakhar Gupta for clearance purpose of import & export consignment....
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....m the importer for filling for clearance for the consignment on behalf of M/s Prakhar Gupta; that he does not have these original documents and will submit the same by 22.03.2022. On being pointed out regarding the statement of Shri Sanjay Kumar that he did not work for Customs Broker M/s Prakhar Gupta, Shri Awadhendra Kumar stated that Shri Sanjay Kumar worked for M/s Prakhar Gupta in this case only though he is not a worker or employee of M/s Prakhar Gupta Shri Awadhendra Kumar stated that as Mr. Prakhar Gupta had no G- Card but they only had H-Card Shri Rohit Mishra), so, on 21.02.2022, I directed Shri Sanjay Kumar to go and get examination done as recommended by Shri Prakhar Gupta. On being shown the e-mail dated 21.02.2022 of Shri Prakhar Gupta and statement dated 04.03.2022 of Shri Prakhar Gupta, wherein he claimed that his Customs Broker License has been used without his authorization and that the authorization letter dated 21.02.2022 was not signed by him Shri Awadhendra Kumar stated that the facts represented by me above are true and correct and what Shri Prakhar Gupta has said may be due to some unfavorable conditions only known to him and he stated all irrelevant facts; ....
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....t Appellant was responsible for filing of the said bill of entry. Proprietor of importer Mr Archit Sharma specifically states that he never had contacted or met the Appellant or was even under impression that bill of entry for clearance of his consignments were to filed by the Appellant. On the contrary he specifically states that the work for the clearance of the said consignment had been entrusted by him to M/s Goodwings Maritime Pvt Ltd. He had even sent all the documents to the email address of the said Custom Broker "[email protected]" from his email address [email protected]. Admittedly all the persons who are concerned with the clearance of the said goods happen to be employee M/s Goodwings Maritime Pvt Ltd. Interestingly in the present case though an authorization letter dated 21.02.2022 has been said to be signed and issued by the Appellant but the fact about denial of the his role in respect of clearance of the said consignment was intimated to customs by the Appellant by his email of the same date. Further original copy of the said authorization letter in the name of Shri Sanjay Kumar has not been produced by anyone at anytime during the investigati....