TaxTMI 
TaxTMI 
2026 (2) TMI 550
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....Commissioner, Inland Container Depot, New Delhi by a letter dated 30.08.2019 along with a copy of the SCN dated 23.04.2019 issued by the Additional Director, Directorate General of Revenue Intelligence [DRI]. He also received another letter from the Deputy Commissioner, ICD Tughlakabad along with a copy of another SCN dated 23.08.2019 issued by the DRI. Treating these two letters and the enclosed SCNs as offence reports, proceedings were initiated against the appellant under CBLR. 2. Both SCNs indicated that two exporters, namely, M/s KKS Export & Import and M/s Snibe Worldwide had filed shipping bills through the appellant to export goods declared as "Self Adhesive Vinyl Sheets" mis-declaring both the nature of the goods and their value in order to avail undue export benefits from the Government. Acting on this intelligence, DRI investigated the matter and issued the aforesaid two SCNs. Investigations were conducted by the Commissioner into the appellant which culminated in issue of a show cause notice dated 28.11.2019 proposing action against the appellant under the CBLR for violation regulations 10(a), 10(d), 10(e) and 10(n). An inquiry officer was also appointed in the SCN w....
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....ppellant filed shipping bills on his assurance and in good faith. (iv) Regarding the finding that the appellant had violated regulation 10(d), this clause requires the Customs Broker to advise his client to comply with the provisions of the Act, other Allied Acts and rules and regulations thereof, and in case of non-compliance bring the matter to the notice of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as a case may be. The appellant had advised Mr. Najib to comply with the provisions of Act and Rules and the appellant was not aware of the mis-declaration of the nature of the goods or the non-existence of the exporters. These came to light only on investigation by DRI. (v) The finding in the impugned order that the appellant had violated regulation 10(e) is not correct. This clause requires the Customs Broker to exercise due diligence in ascertaining the correctness of any information which he imparts to a client with reference to any work related to any cargo or baggage. The appellant had exercised due diligence and did not provide any incorrect information to Mr. Najib or to the exporters. (vi) Regarding the finding that th....
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.... documents for filing the shipping bills and they had not obtained any authorization in their favour even from Mr. Najib. (v) During investigation Mr. Piyush Arora, who is said to be one of the partners of the KKS Exports and Imports stated that he had neither created any firm in that name nor knew any firm by that name. He also said that he never met any person called Mr. Najib. He also filed a police complaint in this matter. (vi) Similary Mr. Rajkumar, one of the supposed partners of M/s Snibe World Wide, gave a statement on 21.08.2019 stating that he had no relationship with M/s Snibe World Wide nor does he know anybody called Mr. Najib. Clearly, all the firms were fictitious and at the behest of Mr. Najib, the appellant had filed Shipping Bills in the name of such non-existent firms. (vii) Therefore, it is clear that the appellant had violated regulations 10(a), 10(d) and 10(n) of the CBLR. (viii) The impugned order may be upheld and the appeal may be dismissed. Findings 6. The three issues to be decided in this appeal are: a) Whether the impugned order was passed beyond the time limit of 90 days laid down under Regulation 17(....
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....nd M/s. Snibe Worldwide. Not only did the appellant not obtain any authorization from either of these exporters, it was not even contacted by the, two exporters. The appellant had also not even contacted the two exporters. The appellant filed Shipping Bills at the behest of Mr. Najib. The submission of the learned counsel is that Mr. Najib had obtained business for the appellant from the exporters. Even if it is so, the least that the appellant should have done is to contact the exporters and obtain their authorisations before filing the Shipping Bills. What the appellant had done is akin to an advocate filing a Writ Petition or a Suit in a court of law in the name of someone without being engaged by that person and without even talking to them and behind their back. 10. If any Customs Broker files a Shipping Bill or a Bill of Entry in the name of any exporter or importer, he will be acting as the agent of that exporter or importer. He cannot appoint himself as someone's agent without that person's explicit authorisation and worse without even his knowledge. He cannot act as the agent of one at the behest of someone else who promises to get him business. Any Bills of Entry or Sh....
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.... Foreign Trade (Development and Regulation) Act, 1992 lays down that 'No person shall make any import or export except under an Importer-exporter Code Number granted by the Director General or the officer authorised by the Director General in this behalf, in accordance with the procedure specified in this behalf by the Director General'. This requirement is well known to anyone dealing in imports and exports. In fact, it is not possible to file the Shipping Bills or Bills of Entry on the Indian Customs EDI System (ICES) without giving the IEC. If the appellant had treated Mr. Najib as its client, it could have only filed documents in his name, using his IEC, if any. The appellant should have advised Mr. Najib so. Instead, the appellant filed benami Shipping Bills at the behest of the Mr. Najib. Not only has the appellant not advised Mr. Najib properly but it has also actively colluded with him in filing benami shipping bills. 15. We have no doubt that the appellant violated Regulation 10(d) of CBLR. 16. Regulation 10(e) of the CBLR requires the customs broker to ensure correctness of the information which it imparts to it's clients. We do not find any evidence that the Custom....