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[Cites 12, Cited by 0]

Custom, Excise & Service Tax Tribunal

Speedway Cargo &Amp Courier Services vs Commissioner, Customs (Import &Amp ... on 10 May, 2022

Author: Dilip Gupta

Bench: Dilip Gupta

      CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL
                                      NEW DELHI

                                    PRINCIPAL BENCH

          CUSTOMS APPEAL NO. 51027 OF 2020 - Cus. (DB)

     [Arising out of Order-in-Original No. 28/MK/REVOCATION/POLICY/2020 dated
     25/06/2020 passed by the Commissioner of Customs (Airport & General), New Delhi -
     110 037.]

     M/s. Speedway Cargo & Courier Services                        ...Appellant
     Room No.2 & 3, House No.819,
     Second Floor, Block K-2,
     VillMahipalpur Extension,
     Near Baba House,
     New Delhi - 110 037.

                                        VERSUS

     Commissioner of Customs                                       ...Respondent
     (Import & General)
     New Custom House,
     Near I.G.I Airport,
     New Delhi - 110 037

     APPEARANCE:

     Shri Ranjish Kumar, Advocate for the Appellant.
     Shri Nagendra Yadav, Authorised Representative for the Respondent.

     CORAM:

     HON'BLE MR. JUSTICE DILIP GUPTA, PRESIDENT
     HON'BLE MR. P. ANJANI KUMAR, MEMBER (TECHNICAL)


                                                       Date of Hearing: 03/03/2022
                                                       Date of Decision: 10/05/2022


                       Final Order No. 50403/2022


     Per: P. ANJANI KUMAR

             M/s. Speedy Cargo and Courier Service 1 have been alleged to

     have violated the provisions of Courier Imports and Exports (Electronic

     Declaration and Processing) Regulations, 2010 2 and the Public Notice

     dated    07.05.2019 issued      by   Commissioner       Air   Cargo   Complex

     (Export), New Delhi, which notice was subsequently amended on

     15.05.2019.

1.   the appellant
2.   the Courier Regulations
                                        2
                                                                        C/51027/2020

     2.      The appellant imported, at the I.G.I. Airport, a shipment of 80

     boxes from Doha on 29.05.2019 and another shipment of 98 boxes

     from Bahrain on 01.06.2019. The above said consignments were

     examined by the Special Investigation & Intelligence Branch of the Air

     Cargo Complex Commissioner of Customs (Export), New Delhi. It was

     found    that   there   were   discrepancies   in   respect   of   seventeen

     consignments. Eight boxes were found to be consigned to States other

     than the seven States (i.e. Delhi, Haryana, Punjab, Himachal Pradesh,

     Jammu and Kashmir, Uttar Pradesh and Uttarakhand) permitted by the

     Public Notice and in respect of nine consignments names/addresses of

     the consignees mentioned in the declarations and on the on the

     invoices attached/pasted on the packages were different.

     3.      Proceedings were initiated under the provisions of Customs Act,

     1962 3. The appellant by letter dated 24.7.2019 submitted that due a

     technical problem in the software used for generating addresses in

     their Doha and Bahrain office, the addresses were wrongly printed and

     the details of the invoices were not double checked by their staff due

     to carelessness. The appellant submitted cancellation receipts and KYC

     documents of the consignor and consignees and requested for a lenient

     view. The proceedings culminated in the issue of Order-in-original

     dated 25.09.2019, by the Deputy Commissioner. The value of the

     impugned goods, valued at Rs. 1,79,403/-, was enhanced under

     Section 111(l) and 111(m) of the Customs Act while giving an option

     to redeem       on payment of Redemption Fine of Rs.80,000 and

     applicable duties and penalties of Rs. 7,000/- and Rs. 2,00,000/-

     were also imposed on the appellant under Sections 112 and 114AA of




3.   the Customs Act
                                       3
                                                                  C/51027/2020

     the Act. The appellant accepted the said Order dated 25.09.2019 and

     paid up the levies and did not file any appeal.

     4.      The Commissioner of Customs (Import & General), New Custom

     House, New Delhi, suspended the courier licence of the appellant with

     immediate effect; issued a show cause notice dated 23.12.2019

     seeking an explanation as to why the License should not be revoked

     and appointed an Inquiry Officer to determine the grounds for

     revocation of the license of the appellant. The Inquiry Officer

     submitted the Inquiry Report on 20.03.2020 and concluded that the

     appellant contravened the provisions of Regulations 4(2), 5(4),

     12(1)(i), 12(1)(iii), 12(1)(v), 12(1)(vii) and 12(1)(x) of the Courier

     Regulations. Accordingly, vide the Order-in-Original, the Commissioner

     revoked the licence issued to the appellant; forfeited security amount

     of Rs.10, 00,000 and imposed a penalty of Rs.50,000/-.

     5.      Shri Rajnish Kumar Varma, learned advocate, appearing for the

     appellant, submits that there is no evidence of existence of mens rea

     on the part of the appellant to defraud Government Exchequer and

     infractions or violations of trivial nature had occurred due to technical

     glitches in the software maintained by their offices in Doha and

     Bahrain due to negligence of the staff posted over there. He submits

     that out of total 178 packages, there was infraction in respect of only 8

     packages, in as much as the invoices pasted on the packages showed

     the State of destination which is other than the seven States permitted

     as per the Public Notice. In respect of nine boxes addresses of the

     consignees mentioned in the Express Cargo Manifest - Import 4, are

     different from the addresses mentioned on the invoices attached /




4.   ECM-I
                                           4
                                                                            C/51027/2020

     pasted on the packages, though addresses were within the 7 permitted

     States.

     6.    Learned counsel submits that it is clear, from the above, that

     punitive action is much harsher on the appellant qua the gravity of

     offence committed inadvertently. Learned counsel submits further that

     there is no evidence that the appellant was going to get any monetary

     benefit by mis-declaring the goods and thereby evading the payment

     of duty; moreover, it is not the case of the department that the

     appellant planned to make illegal gain out of these imports; and

     having regard to      the    facts    and   circumstances in      totality,    the

     punishment inflicted upon the appellant is not proportionate to the

     offence, which was of technical nature. In this connection the learned

     counsel pointed out that the principles of proportionality have been

     explained by the Delhi High Court in Ashiana Cargo Services vs.

     Commissioner of Customs (I & G) 5. The High Court held that

     punishment must be proportionate to gravity and nature of infraction

     by CHA; every infraction of CHA Regulations, either under Regulation

     13   of   Customs   House       Agents   Licensing     Regulations,     2004     or

     elsewhere,   cannot   lead      to   revocation   of   licence;   in    line   with

     proportionality analysis, only grave and serious violations justify

     revocation; and in other cases, suspension for adequate period of time

     resulting in loss of business and income suffices, both as punishment

     for infraction and as a deterrent to future violations. Learned counsel

     submits that this judgment has been affirmed by the Supreme Court 6.

     7.    Learned counsel further submits that the appellant also brought

     to the notice of the Commissioner his financial, economic and family

     problems/conditions after closure of his business. However, the

5.   2014 (302) E.L.T. 161 (Del.)
6.   2015 (320) E.L.T. A175 (S.C.)
                                         5
                                                                         C/51027/2020

Commissioner did not pay any heed to the submissions qua miserable

conditions of the appellant and imposed such a severe punishment

which has snatched away his livelihood forever. The appellant has

already   suffered      enormously.         Therefore,   in    the   conspectus    of

circumstances, the impugned Order dated 25.06.2020 is bad in law

and deserves to be set aside.

8.   Shri    Nagendra          Yadav,      learned   Authorised      Representative,

appearing for the department submits that in view of the provisions of

Customs     Act   and     the    Courier     Regulations,      the   appeal   against

revocation of Courier License lies with Chief Commissioner and not

CESTAT; the submission of the appellant that there is no evidence of

malafide intention or mensrea for the alleged infraction or violation

and the same was due to technical problem/glitches in the software at

overseas offices of the appellant or was due to negligence of the staff

posted    over       there,     is   not     sustainable.      Learned   Authorised

Representative submits that the appellants have been giving different

and inconsistent explanations as follows:

     (a) Initially the appellant submitted that the invoices had been

          pasted on wrong boxes; when their offices at Bahrain & Doha

          came to know about the discrepancy, they made changes in

          relevant declarations and put correct details of consignor and

          consignee;     the    addresses     of   consignor   and   consignee

          mentioned in the declarations and bills of entry were

          correct;

     (b) Later on, they submitted that invoices pasted on the boxes

          pertained to another lot; but, could not produce details of

          the bookings of the shipments on being asked; they simply

          submitted that on permission from consignor/shipper, the

          courier cancelled the booking and returned the goods; and
                                   6
                                                                C/51027/2020

      (c) Appellant came up with another explanation that due to

         technical problem in software used in Doha & Bahrain offices,

         consignee/ consignor names and addresses got changed

         while taking print out of the invoices; the details of the

         invoices were not double checked by their staff due to their

         carelessness.


9.    Learned Authorised Representative submits that the explanation

given by the appellant raise doubts about the credibility as it was

changing its version and did not submit complete and reliable

documents in support of their claim. The appellant had no explanation

for the misdeeds of their offices at the Consignor location in which they

were also accomplices.

10.   Learned     Authorised     Representative      submits     that    the

representative of the appellant in his statement admitted that he was

aware about the Public Notices, yet the appellant acted in utter

disregard of the Public Notice and what is striking is the fact that the

violations took place on 30.05.2019, immediately after the issuance of

Public Notice. Learned Authorised Representative submits that the

appellant failed to establish that it had exercised         due diligence;

appellant's submission    that there is no evidence that the appellant

was going to get any monetary benefit by mis-declaring the goods is

also not sustainable; the appellant tried to get the goods cleared duty

free in the guise of gift shipments by undervaluation; and initially it

filed Courier Bill of Entry-XII meant for gift shipments but when

undervaluation was unearthed, it filed Courier Bill of Entry-XIII meant

for dutiable goods. This act clearly shows that the appellant did so

intentionally for monetary benefit and that the serious offence
                                                 7
                                                                                      C/51027/2020

      jeopardizing Revenue's interest took place, which cannot be dealt with

      leniency.

      11.   Learned Authorised Representative submits that the revocation

      of licence is justified and he relies on the ratio of the case KM Ganatra

      & Co. vs. Commissioner of Customs 7. On the issue of need for due

      diligence     on    the     part    of    the       appellant,      learned     Authorised

      Representative       relies   on    the       ratio   of     decisions   of     CESTAT    in

      Millennium         Express     Cargo          Pvt     Ltd.    vs.   Commissioner         of

      Customs, New Delhi 8, which was further affirmed by Delhi High

      Court 9 and Rubal Logistics Private Limited vs. Commissioner of

      Customs (General), New Delhi 10. On the appellants claim for

      commensurate punishment, learned Authorised Representative relies

      on the decisions rendered in Commissioner of Customs and Central

      Excise vs. H.B. Cargo services 11. He further relies on the following

      cases.

            (i)     Multi Wings Clearing & forwarding Pvt. Ltd. vs.
                    C.C.(General),New Delhi 12;
            (ii)    Skytrain Services vs. Commissioner of Customs
                    (Airport & General), New Delhi 13;
            (iii)   Sri Durga Shipping Agencies vs. Commissioner of
                    Customs 14;
            (iv)    DHL     Lemuir       Logistics        Private    Limited    vs.    The
                    Commissioner of Customs 15;
            (v)     Jasjeet Singh Marwaha vs. Union of India (UOI) and
                    Ors.16 ;
            (vi)    Eagle       Transport      Services       vs.    Commissioner        of
                    Customs, Mumbai 17;

7.    2016 (332) E.L.T. 15 (S.C.)
8.    2017 (346) E.L.T. 471 (Tri. - Del.)
9.    2017 (354) E.L.T. 467(Del.)
10.   2019 (368) E.L.T. 1006 (Tri. -Del.)
11.   2011 (268) E.L.T. 448 (A.P.)
12.   2019(369) E.L.T. 820 (Tri.-Del.)
13.   2019(369) E.L.T. 1739 (Tri.-Delhi)
14.   2014(299) E.L.T. 97 (Tri- Chennai)
15.   Customs Appeal No. 2275 of 2010 decided on 14.03.2011
16.   2009 (239) E.L.T. 407 (Del.)
                                          8
                                                                       C/51027/2020

            (vii) Commissioner of Customs vs. Worldwide Cargo
                   Movers 18;
            (viii) Noble      Agency   vs.    Commissioner     of   Customs,
                   Mumbai 19;
            (ix)   Gursharan     Singh       Walia   vs.   Commissioner   of
                   Customs (Preventive) 20; and
            (x)    Bhaskar Logistic Services Pvt. Ltd. vs. Union of
                   India 21


      12.   Heard both sides and perused the records of the case.

      13.   The allegation against the appellant is that invoice values and

      description found on the invoices pasted on the boxes/bags and invoice

      details uploaded electronically in Electronic Courier Clearance System

      (ECCS) or as found in Courier Bills of Entry (CBE) filed were different.

      Further, eight boxes were destined to States other than the 7 States

      permitted vide Public Notice dated 7.5.2019; that in consignments

      imported by the appellant courier agency, there were discrepancies

      with respect to the address of the consignees; some of the

      consignments were addressed to States which were not mentioned in

      the Public Notice cited above; that it had violated the provisions of

      Courier Regulations and the Public Notice dated 07.05.2019 issued by

      Commissioner (Air Cargo Complex) Export, New Delhi.

      14.   The appellant does not deny the aforesaid facts. The appellant

      submits that the mistake occurred at the end of their overseas

      counterpart. The appellant submitted that the mistake occurred due to

      clerical error and technical glitches at the consignor's end at Bahrain

      and Doha and that as soon as the error was noticed, the same was

      communicated to the appellant and it sought amendment of the



17.   1997(96)E.L.T.469(Tribunal)
18.   2010 (253) E.L.T. 190 (Bom.)
19.   2002(142)E.L.T.84(Tri.- Mumbai)
20.   2017(347)E.L.T.132(Tri.-Del.)
21.   2016(340)E.L.T.17(Pat.)
                                   9
                                                              C/51027/2020

declarations but meanwhile officers of Special Investigation and

Intelligence Branch (SIIB) intercepted the consignments and started

investigation.

15.   The reasoning given by the appellant cannot be accepted. It is

very difficult to believe that there was a technical glitch and clerical

error at both places abroad at the same time. The appellant did not

produce any evidence, either before the Commissioner or before this

Bench to substantiate this submission. It only submitted that it had

cancelled the consignments and returned the packets to the senders.

However, no evidence of such cancellation was given. It is very difficult

to believe that a courier agency working at an international level would

work in this unprofessional manner. Assuming that the contention of

the   appellant   that   the   consignments   which   were   destined   to

Maharashtra and other States other than the seven States mentioned

in the above cited Public Notice have by mistake arrived at Delhi. The

most logical explanation would have been showing evidence to the

effect that the consignments destined to the seven States had gone to

other destinations, in case of any interchange as claimed by the

appellants. However, no such evidence has been put forth by the

appellant. It has also not produced any evidence to indicate the

cancellation of some consignments, whose addresses were found

affixed on the boxes imported at Delhi. Therefore, we are of the

considered opinion that the submissions of the appellant is only a

feeble attempt to cover up the lapses on its part. The Commissioner

and the Inquiry Officer have observed that it was difficult to presume

that mistake of the same nature happened in the software at two

different offices at Bahrain and Doha. The appellant itself accepted that

the details of invoices were not double checked by their staff due to
                                      10
                                                                        C/51027/2020

carelessness. The mismatch in the consignor/ consignee details was a

modus operandi adopted by the appellant to circumvent the Public

Notice.

16.   The main allegation on the appellant Courier Agency is that it

had violated the provisions of the Courier Regulations. A look at the

relevant Regulations, alleged to have been violated by the appellants,

would be beneficial to appreciate the issue in a better perspective.

      (i)     Regulation 4(2) of CIER, 2010: "Imported or export goods shall
              bear a declaration from the sender or consignor regarding the
              contents of each packages and the total value thereof.
      (ii)    Regulation 5(4) of the CIER, 2010: "The Authorised Courier
              shall present imported goods brought by him or by his agent, in
              such manner as to satisfaction of the proper officer or as per
              instructions issued by the Board or Public Noticeissued by
              Commissioner of Customs, from time to time , for inspection ,
              screening, examination and assessment thereof'.
      (iii)   Regulation 12(1)(i) of CIER, 2010: An Authorised Courier shall
              obtain an authorisation, from each of the consignees or
              consignors of the imported goods for whom or from whom such
              Courier has imported such goods; or consignees or consignors
              of such export goods which such Courier proposes to export, to
              the effect that the Authorised Courier may act as agent of such
              consignee or consignor, as the case may be, for clearance of
              such imported or export goods by the proper officer...'
      (iv)    Regulation 12(1)(iii) of CIER, 2010:"An Authorised Courier shall
              advise his consignor or consignee to comply with the provisions
              of the Act, rules and regulations made thereunder and in case
              of non-compliance thereof, he shall bring the matter to the
              notice of the Assistant Commissioner or Deputy Commissioner
              of Customs"
      (v)     Regulation 12(1)(v) of CIER, 2010 : "An Authorised Courier
              shall exercise due diligence to ascertain the correctness and
              completeness of any information which he submits to the
              proper officer with reference of any work related to the
              clearance of imported goods or export goods."
      (vi)    Regulation 12(1)(v) of CIER, 2010: " An Authorised Courier
              shall not withhold any information relating to assessment and
              clearance of imported goods or of export goods, from the
              Assessing Officer"
                                       11
                                                                         C/51027/2020

      (vii)   Regulation 12(1)(v) of CIER, 2010: "An Authorised Courier shall
              abide by all the provisions of the Act and the rules, regulations,
              notifications and order issued thereunder".


17.   The Enquiry Officer has given a clear finding that by acts of

commission and omission, the appellant clearly violated the provisions

of Regulation 4(2), 5(4), 12(1) (i), 12(1) (iii), 12 (1) (v), 12 (1) (vii) &

12 (1) (x) of the Courier Regulations, the provisions of Public Notice

No.03/2019 and the provisions of Section 111 of Customs Act. The

submissions made before us by the appellant were also made before

the Commissioner, who has considered all the submissions of the

appellant and came to the conclusion that the appellant violated the

provisions of the Courier Regulations. The Commissioner has discussed

the violations of each of the provisions of the above cited Regulations

as under:

          "28.       Now, I discuss the alleged violation of the various
          provisions of the CIER, 2010 by the Noticee one by one:


          28.1.      The Regulation 4(2) of the CIER, 2010 mandates truthful
          declaration regarding contents of the packages imported and
          values thereof. As discussed supra, it has been found beyond doubt
          that the Noticee made wrong and incorrect declaration about the
          contents and values of the courier packages and violated the
          provisions of the Regulation 4(2) of the CIER, 2010.


          28.2.      As for the compliance of the Regulation 5(4) of the
          CIER, 2010 is concerned, 8 HAWBs/ boxes were found to be
          destined to states other than the 7 states in violation of the Public
          Notices. The IO has also found that the invoices/packing lists
          pasted on the boxes were correct and to get clearance of these 8
          boxes wrong ECM and invoice details were entered to bypass the
          PNs. As has already been discussed, all this happened with active
          knowledge of the Noticee. Thus, I have no hesitation in holding
          that the Authorised Courier has failed in complying with the
          provisions of the Regulation 5(4) of the CIER, 2010.


          28.3.      Further, it is not in doubt here that consignee-consignor
          details pasted on the boxes did not match with the details provided
                             12
                                                                  C/51027/2020

by the Noticee in the ECM. It is obvious that the Noticee had
authorisation as per the ECM details but the boxes had different
consignee-consignor pasted on them to whom the boxes were
actually meant to be delivered. Natural inference is that the
Noticee did not have authorisation from the actual consigners. In
their defence, the Noticee have submitted that they did not commit
any altering and tampering in the invoices/details, however, the
operation manager of the Noticee did admit in his statement that
they    and   their   overseas     counterparts   knew    about     the
discrepancies. By not disclosing this fact to the department timely,
the Noticee only proved their guilt in the matter. Here, I concur
with the findings of the IO that 'the mis-match in the details of the
consignor & consignee as stated in the ECM vis-a-vis those
mentioned on the declaration pasted on the packages, establishes
that they have also obtained wrong authorisation from the
consignor which is required at the pre-clearance stage.' Hence, I
hold that the Noticee have not acted in accordance with the
Regulation 12(l)(i) of the CIER, 2010.


28.4.      Against the allegation of violation of the Regulation
12(1)(iii) of the CIER 2010, the Noticee have submitted that 'the
said issue was addressed before the designated officer as and
when the Noticee got constructive knowledge about the inadvertent
omission'. I find this to be a fallacious argument as it has been
established beyond doubt that the Noticee had prior knowledge of
the discrepancies yet they went ahead with their efforts to get the
shipments Custom cleared. Not only did the Noticee not advise
their clients about the restrictions stipulated by the PNs but did not
inform the department about the discrepancies in the shipments.
The impugned goods were mis-declared not only in terms of
description but their value was also not correctly declared. This
only affirms the view of that the Noticee was the kingpin of the
whole scheme. Thus, I hold that the Noticee has violated provisions
of the Regulation 12(1)(iii) of the CIER, 2010.


28.5.      The   mis-declaration     regarding    consigner-consignee
details; description, quantity and value of the goods has already
been proven in this case. It has been established that the Noticee
were aware about the said discrepancies prior to filing of the Bills
of Entry for the impugned goods. It is also on record that dutiable
goods were presented as gift consignments for Customs clearance.
Thus, it is not difficult to conclude that the Noticee did not submit
correct and complete information to the proper officer while
presenting the goods for clearance and violated the provisions of
the Regulation 12(1)(v) of the CIER, 2010.
                                       13
                                                                          C/51027/2020



           28.6.      Moreover, it is amply clear from the case-facts that the
           Noticee concealed correct information vis-a-vis the description,
           value and quantity of the impugned goods from the assessing
           officer which was eventually detected by the investigating agency
           and resulted in re-assessment culminating thereby in conversion of
           the gift consignments into dutiable consignments. The planned
           evasion of duty could be stopped only due to alertness of the
           Customs officers. So, it suffices to hold that the Authorized Courier
           did withhold assessment and clearance related information from
           the assessing officer and thus they contravened the provisions of
           the Regulation 12(1)(vii) of the CIER, 2010.


           28.7.      From the discussion above, it crystallizes that the
           Noticee did violate provisions of the Customs Act 1962; Customs
           Valuation (Determination of Value of Imported Goods) Rules, 2007;
           the CIER, 2010 and the Public Notices issued for proper functioning
           of the EICI Terminal of New Courier Terminal (NCT), New Delhi.
           Thus, I hold that the Noticee violated provisions of the Regulation
           12(1)(x) of the CIER, 2010."


18.   It is apparent from the facts of the case that the appellant had

failed to comply with the provisions stipulated in Public Notices dated

7.5.219 and 15.5.2019 inasmuch eight boxes were destined to States

other than that seven States in violation of the said Public Notices. We

are in agreement with the submission of the learned Authorised

Representative that the appellant mis-declared the particulars like

consignee-consignor address, value, quantity and description of goods

in the House Air Way Bills (HAWB) and that when the address of

consignee was given wrongly, the appellant would have been in no

position    to     obtain   the   requisite   authorization      from    the       actual

consignor/consignee as mandated in the Regulation 12(1) (i) of the

Courier Regulations. The appellant did not disclose/ declare the actual

consignor/consignee for the purpose of the clearance of their goods.

Therefore, the department was not wrong in alleging that the appellant

had mis-declared the details in House Air Way Bills (HAWB), in terms
                                   14
                                                                  C/51027/2020

of consignee-consignor address, value, quantity and description of

goods. By applying the principle of preponderance of probability, we

find it quite logical to accept the contention of the department that the

the appellant had an intention to evade payment of customs duty. The

conclusion is fortified by the fact that the appellant had accepted the

enhanced value and paid up the differential duty without raising a

protest. It is apparent that the appellant attempted to get the dutiable

goods cleared in guise of gift consignments. But for the interception

by Customs Officers, organised evasion and flouting of Rules on the

part of the appellant would have gone unnoticed. The commissioner

has brought out each of the violations of the Courier Regulations, by

the appellant. Therefore, there is no doubt whatsoever, that the

appellant violated not only the provisions of the Courier Regulations

but also the provisions of Customs Act, 1962.

19.   The courier registration issued to the appellant clearly stated

that the Authorised Courier shall strictly adhere to the provisions laid

down in the Notification No.36/2010-Customs (NT) dated 05.05.2010

(as amended) and the permission to operate as Authorised Courier will

be revoked, de-registered or suspended on any of the following

grounds:

      a.    Failure of the Authorised Courier to comply with any of

            the conditions of the bond executed by him under

            Regulation 11 of the Notification No.36/2010-Customs

            (NT);

      b.    Failure of the Authorised Courier to comply with any of

            the provisions of the Courier Imports and Exports

            (Electronic   Declaration   and   Processing)   Regulations,

            2010; and

      c.    Any misconduct on the part of the Authorised Courier.
                                 15
                                                             C/51027/2020


20.   Learned Counsel for the appellant relied upon Ashiana Cargo

Services. The facts of the case therein are entirely different from the

present case. The above case pertains to a Custom Broker who was

penalised for concealment detected in one of the consignments and

there was no evidence to the effect that the G-Card Holder the Custom

Broker was aware of the concealment. In the impugned case before

us, the appellant it is alleged to have committed various violations and

the Authorized Representative of the appellant has accepted that there

was mis-declaration though he tried to blame it on the consignor's

end. Therefore, the ratio of the judgment cannot, in any manner,

come to the aid of the appellant. The Department has also relied on a

number of cases. Some of the cases pertain to maintainability of the

appeal before Tribunal. In view of the subsequent decisions by the

Tribunal, this Tribunal has the jurisdiction to decide on the issue. Most

of the cases relied upon by the Department pertain to Custom Broker

Licence and a few cases pertain to the Courier Service. However, even

in the cases pertaining to Courier, the facts of the cases are different

from the present case. Therefore, we do not find them relevant to the

present proceedings.

21.   The Government has been simplifying the law and procedure

relating to imports through courier from time to time. Accordingly, lot

of trust and reliance has been placed on the courier agencies. A very

clear procedure has been put in place by way of Courier Regulations to

stream line the imports through Courier mode. It was incumbent upon

the appellant Courier agency to adhere to the Regulations in order to

safeguard the interest of Revenue and the trust placed on them. The

appellant Courier was mandated to work within legal framework of the

Customs Act, 1962, Rules and Regulations made thereunder. The
                                 16
                                                             C/51027/2020

appellant failed to do so. The appellant did not exercise due diligence

in submitting the correct and complete information to the assessing

officer with reference to the impugned goods. By violating the

Regulations, it had given scope for massive misuse of the facility given

in addition to loss of Revenue. In short, the appellant courier agency

has breached the trust reposed on it by the Revenue. Therefore, the

revocation of License is justified and any leniency shown in the

misconduct of this nature would send wrong signals. Punishment of

revocation of Licence would certainly go a long way to act as a

deterrent. In view of the above, there is no reason to interfere with

the impugned order and, accordingly, the appeal is liable for rejection.

22.   In view of the above, the appeal is dismissed.




                 (Order Pronounced on 10.05.2022)




                                             (JUSTICE DILIP GUPTA)
                                                        PRESIDENT




                                                  (P. ANJANI KUMAR)
                                               MEMBER (TECHNICAL)
                                    17
                                                                   C/51027/2020

 CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL
                                 NEW DELHI

                               PRINCIPAL BENCH

     CUSTOMS APPEAL NO. 51027 OF 2020 - Cus. (DB)

[Arising out of Order-in-Original No. 28/MK/REVOCATION/POLICY/2020 dated
25/06/2020 passed by the Commissioner of Customs (Airport & General), New Delhi -
110 037.]

M/s. Speedway Cargo & Courier Services                       ...Appellant
Room No.2 & 3, House No.819,
Second Floor, Block K-2,
VillMahipalpur Extension,
Near Baba House,
New Delhi - 110 037.

                                   VERSUS

Commissioner of Customs                                      ...Respondent
(Import & General)
New Custom House,
Near I.G.I Airport,
New Delhi - 110 037

APPEARANCE:

Shri Ranjish Kumar, Advocate for the Appellant.
Shri Nagendra Yadav, Authorised Representative for the Respondent.

CORAM:       HON'BLE MR. P. ANJANI KUMAR, TECHNICAL MEMBER


                                                  Date of Hearing: 03/03/2022
                                                  Date of Decision:10/05/2022



                                   ORDER

Order Pronounced (P. ANJANI KUMAR) MEMBER (TECHNICAL)