TaxTMI 
TaxTMI 
2026 (2) TMI 481
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....00/- in the form of National Savings Certificates furnished by the Customs Broker under regulation 14 of CBLR, 2018. iii. I hereby impose penalty of Rs. 50,000/-(Rupees Fifty thousand only) on M/s RKV Logistics Pvt. Ltd. 'the Customs Broker' holding a Customs Broker License No. 02/CHALR/REGULAR/KNP/2006 dated 10.05.2006 under Regulation 18 of the CBLR, 2018." 14. This order is passed without prejudice to any other action which may be taken against the Customs Broker and their employees under the Customs Act, 1962, or any other act for the time being in force in the Union of India." 2.1 Appellant is holding a Customs Broker License No. 02/CHALR/REGULAR/KNP/2006 dated 10.05.2006 (PAN: AADCR3146G) issued by the Commissioner of Customs & Central Excise, Kanpur. The Customs broker is registered under Regulation 7(3) ibid to work in Mumbai Customs. 2.2 Acting on some information that exotic animals are being smuggled in the guise of ornamental fish by M/s Zion, the DRI officers intercepted a vehicle bearing registration number MH01DR9552 which has taken import delivery from ACC, Mumbai and brought the said vehicle back to ACC, Mumbai for detailed examinati....
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....t, Pune, vide their letter dated 07.10.2022 confirmed that the market value of exotic animals found was Rs.2,98,71,550/-. 2.5. To ascertain the status of Aquarium Fishes, the 16 boxes containing Aquarium fishes that were handed over to the custodian of MIPL/CZ Cold Storage for safe Keeping, were again opened and were examined by DRI officer in presence of officer from WCCB on 08.10.2022. Upon examination, it was found that majority of fishes were in living condition. On the suggestion of Wildlife Inspector, WCCB, the fishes contained in all the 16 boxes were handed over to Taraporvala Aquarium, Mumbai. 2.6 Appellant in the present case is a customs broker agent who had filed Bill of Entry for the clearance of the consignment. 2.7 After completion of the investigations, show cause notice was issued to the importer and others including Shri Chandrashekhar Yadav, Employee of the appellant to show cause as to why:- "i. The species of live exotic animals as mentioned in 'Annexure-A' of SCN dated 03.04.2023 (market value of whose was found to be Rs.2,98,71,550/-) of this Show Cause are prohibited/restricted for import under Customs Act, 1962 and Wildlife Protect....
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....ions of the importer Shrilmmenvel Raja, cleared Bill of Entry No. 2743725 dated 05.10.2022. He was aware of the contents of goods imported vide Bill of Entry No. 2743725 dated 05.10.2022. He colluded with Shri Immanvel Raja to import and deliver such prohibited goods into the country for monetary considerations. 3.2. The Adjudicating authority has found that the trio hatched a conspiracy to smuggle the exotic animals which are prohibited. The conspirators i.e. Shi Immanuel Raja. Shri Victor Lobo and Shri Chandrasekhar Yadav, jointly, performed their individual roles to smuggle the contraband. The trio, in their respective depositions has admitted the hatched conspiracy and their role in the smuggling activities, in their respective depositions. It is a settled position that admitted facts need not be proved. Further, the chat procured during investigations; act as an incriminating documentary evidence, to reveal the planned conspiracy of smuggling. It is a settled position that Customs Act is a civil act and basically proceeds on preponderance of probability, so it is settled law that every allegation is not required to be proved with mathematical precision. It is also not....
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....e said show cause notice was adjudicated as per the impugned Order-in-Original dated 22.07.2024 referred in para 1 above. 2.12 Aggrieved appellant have filed this appeal. 3.1 I have heard Ms Stuti Saggi learned Counsel appearing for the appellant and Shri A.K. Choudhary learned Authorised Representative appearing for the revenue. 4.1 I have considered the impugned orders along with the submissions made in appeal and during the course of argument. 4.2 Impugned order records as follows:- "9.1 At the outset, I do not agree with the finding of inquiry officer. The inquiry did not observe any direct involvement of the Customs Broker, F-Card holder (Radhe Shyam Mishra). The Inquiry officer stated that a deliberate and wilful wrongdoing has been done by H-Card holder in this case for which he has already been penalized and FCard holder (RKV Logistics. Radhe Shyam Mishra) need not be punished by revoking his license for deliberate and wilful mistake of H-Card holder. In this regard, I want to reproduce the Regulation 13(12) of CBLR, 2018 which is as below:- "The Customs Broker shall exercise such supervision, as may be necessary to ensure proper condu....
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....onal Trade in Endangered Species of wild Fauna and Flora. Under the said Regulations in place, any import in contravention of the said provision is prohibited. I find that the customs broker clearly failed to advise his client to comply with the provisions of the Act, other allied Acts and the rules and regulations thereof. He further failed to bring the matter to the notice of the jurisdictional Deputy/Assistant Commissioner of Customs. Thus, the Customs Broker has not fulfilled the obligations as stipulated under Regulation 10 (d) of CBLR. 2018. 9.2.2 Regulation 10 (e) of CBLR, 2018:"A customs broker shall 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;" I find that the Customs Broker has failed to ascertain whether the declared goods were being imported into India as per prevailing law. He failed to advice his client as per prevailing Acts, Regulations and Orders issued in this regard from time to time. Despite knowing the fact the said consignment would be having prohibited animals the customs broker had completed all the customs cl....