TaxTMI 
TaxTMI 
2026 (8) TMI 170
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....mmunication was received from Directorate of Revenue Intelligence, Bangalore Zonal Unit (DRI) dated 25.03.2025, informing the Commissioner of Customs (General), New Customs House (NCH), Mumbai that goods imported by an importer M/s Shree Gayathri Pulses, Jalgaon (IEC 03090499440) vide Bill of Entry (B/E) No. 7999485 dated 25.01.2025 and cleared through Nhava Sheva port were intercepted by them, and upon physical examination, it was found that "Green Peas", a restricted item was found as against the declared item of "Yellow Peas". Further, the said communication also stated that import policy for "Green Peas" is restricted and is permitted through Kolkata port only, subject to the fulfillment of Minimum Import Price (MIP) fixed for import at Rs.200/Kg. CIF; however, the imports in the referred case were in violation of these restrictions prescribed in terms of Directorate General of Foreign Trade (DGFT) Notification No.37/2015-20 dated 18.12.2019. Therefore, the imported goods have been seized, and further investigations were being carried out by DRI. The importer had been arrested on 19.03.2025, and since the Customs Broker (CB) handling such transaction in the present B/E and earl....
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.... alleged offence involving mis-declaration of imported goods was intercepted on 25.01.2025 and the offence report was later issued on 14.02.2025. Therefore, he stated that SCN was issued beyond the prescribed period of 90 days and proceedings ab initio is irregular and the proceedings are liable to be set aside on this ground alone. Further, he also stated that after the immediate suspension of the CB license, no post decisional hearing was offered for passing necessary order for continuing the suspension, during the period of conducting regular inquiry proceedings as prescribed under the CBLR, 2018. 3.2 In respect of Regulations 10(d) ibid, learned Advocate stated that the appellant Customs Broker can be held to be violating Regulation 10(d) only if it is established that he was aware about the attempt made by the importer to clear the goods by mis-declaration or by undervaluation and that despite knowing this, he has abetted or colluded with the importer. In the present case, there is absolutely no evidence to conclude that the appellant Customs Broker had abetted and colluded with the importer to evade duty or smuggle the restricted goods. In all proceedings before DRI, Inqui....
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....ments of DGFT notification, as they had expressed that they were not aware of the same. 3.4 With regard to violation that the appellant had failed to exercise due diligence to ascertain the correctness of the information that they were imparting to their client (importer) under Regulation 10(e) ibid, learned Advocate submitted that the role of the Customs Broker is to file the bill of entry based on the documents given to them by the Importer. A Customs Broker is not expected to scrutinize or verify the genuineness of the details and documents given by the importer concerned. In the present case, he stated that the goods were declared as per the documents given by the importer and with their approval and hence the allegations raised on the violation of 10(e) of CBLR, has no legs to stand, in the absence of any documentary evidence. He further submitted that the very fact that the customs officers have also allowed the clearance of goods at the port of import after due verification and it is only later such mis-declaration was found out by DRI, supports the case of the appellant that there was no mis-declaration identified at the time of clearance of goods. He further stated that....
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.... sustainable in law. It is further stated by him that the impugned order complied with the timelines specified in CBLR and the timelines for issue of SCN should be viewed as directory in nature and not a mandatory factor. 5. Heard both sides and perused the case records. We have also considered the additional written submissions given in the form of paper books by learned Advocate for the appellant as well as Authorised Representative for the Revenue. 6.1 The issue involved herein is to decide whether the appellant Customs Broker has fulfilled all his obligations as required under CBLR, 2018 or not. The specific sub-regulations which were violated by the appellant are Regulations 10(d) and 10(e) ibid, and hence there are two distinct charges framed against the appellant. On perusal of the records of the case, it is found that immediate suspension of appellant CB license under Regulation 16(1) ibid was issued by the learned Commissioner of Customs, Pune vide Order No. 02/2025 dated 01.08.2025. However, it is also seen that no post decisional hearing was given and no separate order has been passed for deciding whether the immediate suspension should be continued or otherwise, p....
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....rice (MIP) prescribed for Green Peas at Rs.200 per Kg. CIF was not followed in the said imports. It was also stated therein that the appellant CB was in possession of documents relating to import which indicated that the goods were green peas and not yellow peas. Further, the customs classification for both these goods and applicable Basic Customs Duty (BCD) are different; green peas is classifiable under CTI 0713 1020 attracting BCD of 10%, whereas yellow peas is classifiable under CTI 0713 1010 attracting 'Nil' BCD as effective rates of duty. Furthermore, import of Green Peas is allowed only through Kolkata Sea port and not through any of the ports in India. Therefore, learned Commissioner had come to the conclusion that even if the importer had sought classification of imported goods under a particular description, classification which the appellant CB, being inconsistent with the documents in hand with them, should have brought to the notice of the department, and hence held that the appellant CB had violated Regulation 10(d) of CBLR. Similarly, on the allegation of violation against 10(e) of CBLR, the learned Commissioner have observed that since the appellant CB had in his po....
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.... (i) Yellow peas; (ii) Green peas; (iii) Dun Peas and (iv) Kaspa peas, by mentioning the EXIM code no. 0713 1000. Further conditions of such restrictions placed therein are that import quantity of peas allowed for import into the country is upto a prescribed annual quota of 1.5 lakh MTs; and the MIP shall be Rs.200/- or above per Kg. CIF and such importation can also be permitted only through Kolkata sea port and not through any other ports in India. However, certain exceptions have been carved out for non-application of such restrictions in respect of imports made by the Government in fulfillment of commitments made through Bilateral or Regional Agreements or MoU. This was amended by another Notification No.50/2023 dated 08.12.2023, which is also extracted and given below: 8.2 The changes brought through this amendment in the import policy is that with effect from 08.12.2023, the import policy for the said goods was considered as "free" and the conditions of MIP and import being allowed only through Kolkata sea port (prescribed earlier vide notification dated 18.12.2019) were removed for 'Yellow Peas' of HS Code 0713 1010 for a period upto 31.03.20....
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....e under examination in this appeal, as provided in the First Schedule to the Customs Tariff Act, 1975 and ITC (HS) are extracted and given below: First Schedule to the Customs Tariff Act, 1975 "CHAPTER 7 Edible vegetables and certain roots and tubers xxx xxx xxx xxx Tariff Item Description of goods (1) (2) 0713 Dried leguminous vegetables, shelled, whether or not skinned or split 0713 10 - Peas (Pisum sativum) : 0713 1010 --- Yellow peas 0713 1020 --- Green peas 0713 1030 --- Other peas 8.5 On detailed scrutiny of the above, it clearly transpires that all five different types of peas viz., (i) "Peas (Pisum sativum)"; (ii) Yellow peas; (iii) Green peas; (iv) Dun Peas and (v) Kaspa peas, covered under the chapter sub-heading 0713 10 i.e., goods covered under CTI 0713 1010, 0713 1020 and Dun peas and Kaspa peas covered under CTI 0713 1030 were kept under the scope of the DGFT's import policy restrictions initially under Notification No.37/2015-2020 dated 18.12.2019. However, with the issue of Notification S.O. No. 1225 (E) dated 28.03.2020, the Central Government had allowed the im....
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.....1 has mentioned regarding the Inquiry Officer's report as of date 22.09.2025 and stated that the impugned SCN of date 01.08.2025; and in the next sub-paragraph 17.2, he has referred to the Inquiry Officer's report as of date 15.10.2025 and the allegations referred in SCN No.02/2024-05 dated 05.08.2025. The above-mentioned sub-paragraphs of the impugned order are extracted and given below: "17. DISCUSSION AND FINDINGS: 17.1 I have carefully gone through impugned Show Cause Notice dated 01.08.2025 having facts of the case, material evidence on record, Inquiry Report dated 22.09.2025, oral and written submissions made by CB. 17.2 I observe that the charges framed against the said CB is for violation of Regulation 10(d), 10(e), 10(f) and 10(m) of CBLR, 2018 and alleged in Show Cause Notice No.02/2024-25 dated 05.08.2025. Accordingly to the Inquiry Officer vide his Inquiry Report dated 15.10.2025 states that there is violation of regulations 10(d), 10(e), & there is no violation of Regulation 10(f) and 10(m) of CBLR, 2018." It appears that mention of different dates of the SCN and Inquiry Reports could be of clerical or typographical mistake, but the two d....
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....nts brought in through various notifications No. 61/2023 dated 23.02.2024; No.04/2023 dated 05.04.2024; No. 12/2024-25 dated 08.05.2024; No.29/ 2024-25 dated 13.09.2024; No.43/2024-25 dated 24.12.2024; No.63/ 2024-25 dated 10.03.2025; No.16/2025-26 dated 31.05.2025 and No.70/ 2025-26 dated 31.03.2026, where by 'Yellow Peas' were allowed without any such MIP condition and port restrictions for the period specified therein from time to time. Further, Notification S.O. No. 1225 (E) dated 28.03.2020 continued the restrictions for other types of peas. Therefore, in the present case relating to imports that had taken place during November, 2024 to January, 2025, it is not clear as to how the imported goods were allowed to be cleared after proper verification either by the customs officers or after subjecting these import declarations under the Risk Management System. Therefore, it is not clear how such a restriction placed on similar nature of goods are not captured in the National Customs Targeting Centre alert system of CBIC or how the major custom house like JNCH, Nhava Sheva are not aware of the existence of such restriction in import of various types of 'peas', as similar goods have....
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....om House Agent, which the Petitioner was, only files the Bills of Entry on behalf of the importer relying on the documents provided to him by the importer, and if there is mis-match between what is mentioned in the documents given to the Customs House Agent to file Bills of Entry and what is found in the FCL container, prima-facie, the Custom House Agent cannot be made liable; Added to that in the case at hand the 7x40 ft. containers were FCL containers." 10.1. Learned Commissioner of Customs had come to the conclusion that the CB had violated the provision of Regulation 10(e) ibid, as it has been established that the appellant CB had failed to file the B/Es properly as per the correct packing lists. Thus, he concluded that the appellant CB is liable for violation of the Regulation 10(e) ibid. 10.2. The charges framed under the SCN dated 01.08.2025 are an independent proceeding under CBLR, 2018 for which the adjudicating authority is required to give specific findings on the basis of inquiry proceedings conducted as per Regulation 17 and 18 ibid. Further, with respect of the packing lists containing the correct description etc., the appellant CB did not impart any specific in....
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....7 /2015-2020 New Delhi, Dated: 18th December, 2019 Subject: Amendment in import policy and Policy condition under HS code 0713 1000 of Chapter 7 of ITC (HS), 2017, Schedule - I (Import Policy). S.O. (E): In exercise of powers conferred by Section 3 of FT (D&R) Act, 1992, read with paragraph 1.02 and 2.01 of the Foreign Trade Policy, 2015-2020, as amended from time to time, the Central Government hereby amends import policy and policy conditions under HS code 0713 1000 of Chapter 7 of ITC (HS), 2017, Schedule - I (Import Policy), as under: Exim code Item description Existing import policy Revised policy Existing Policy condition Revised Policy condition 0713 10 00 Peas Restricted Restricted and Import of Peas shall be subject Import of Peas shall be subject to an annual (fiscal year) quota of 1.5 lakh MT as per procedure notified by DGFT and it will be subject to Minimum (Pisum sativum) including subject to Minimum Import Price to an annual (fiscal year) quota of 1.5 lakh Yellow peas, MT as per Green (MIP) of procedure peas, Rs.200/ notified by DGFT. Import Price (MIP) of Dun CIF per kg. This Restriction Rs. 200/- and above Peas shall not apply to C....
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....-- Yellow Peas Restricted Import of Peas shall be subject to an annual (fiscal year) quota Minimum Import Price (MIP) of Rs. 200/- and above CIF per kilogram and import is allowed through Kolkata Sea port only. This Restriction shall not apply to Governments import commitments under any Bilateral or Regional Agreement or Memorandum of Understanding. Free a) Import is 'Free' without the MIP condition and without Port Restriction, for the period up to 315% March 2024. Import consignments where Customs out-of- charge is issued after 31st March 2024 shall not be considered as 'Free'. b) With effect from 1st April 2024, the 'Restricted' import policy and associated policy conditions as existing prior to this Notification shall come into force. c) All import of Yellow Peas during this period up to 31st March 2024 shall be allowed subject to compulsory registration under the Import Monitoring System. A 2. Procedures in regard to prior registration of Yellow Peas consignments under the Import Monitoring System shall be notified separately. Effect of the Notification: Import of Yellow Peas under ITC(HS) Code 07131010 is "Free" subject to regi....
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.... force. c) All import of Yellow Peas during this period up to 31st March 2024 shall be allowed subject to compulsory registration under the Import Monitoring System. c) All Import of Yellow Peas where Bill of Lading (Shipped on Board) is dated on or before 30th April 2024 shall be subject to compulsory registration and uploading the copy of Bills of Lading under the Import Monitoring System. 2. Revised Procedures in regard to prior registration of Yellow Peas consignments under the Import Monitoring System shall be notified separately. Effect of the Notification: Import of Yellow Peas under ITC(HS) Code 07131010 is "Free" without the MIP condition and without Port Restriction, subject to registration under the Import Monitoring system, with immediate effect for all Import Consignments where Bill of Lading (Shipped on Board) is issued on or before 30th April 2024. This is issued with the approval of the Minister of Commerce & Industry. A Ct 23.2.2024 (Santosh Kumar Sarangi) Director General of Foreign Trade & Ex- officio Addl. Secretary to the Government of India E-mail: [email protected] [Issued from F. No.M-5012/300/2002/PC-2[A]/Part-VI/E-9019] [To be published in th....
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....dings 0709, 0710, 0711 and 0712, the word "vegetables" includes edible mushrooms, truffles, olives, capers, marrows, pumpkins, aubergines, sweet com (Zea mays var. saccharata), fruits of the genus Capsicum or of the genus Pimenta, fennel, parsley, chervil, tarragon, cress and sweet marjoram (Majorana hortensis or Origanum majorana). 3 Heading 0712 covers all dried vegetables of the kinds falling in headings 0701 to 0711, other than (a) dried leguminous vegetables,shelled (heading 0713); Product Description and Import Policy HS Code Description Import Policy Policy Condition Notification No. Notification Date 071310 Peas (Pisum sativum) 07131010 Yellow peas Free a) Import is 'Free' without the MIP condition and without Port Restriction, for Import consignments where Bill of Lading (Shipped on Board) has been issued on or before 31st March, 2027. b) Imports where Bill of Lading (Shipped on Board) is issued after 31st March, 2027 shall be 'Restricted' and associated Import Policy Conditions as existing prior to the DGFT Notification 50/2023 dated 08.12.2023 shall come into force. c) All imports of Yellow Peas where Bill of Lading (Shipped on Board) is dated ....