The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ) relieved all charges against the customs broker for the misdeclaration of goods in shipping bills, considering the forfeiture of the Security Deposit.
Daroowala Bros & Co, the appellant, is a holder of customs broker licence, under the authority of regulation 18 of Customs Brokers Licensing Regulations, 2013 in order of Commissioner of Customs (General), Mumbai, pertains to handling of two shipping bills no. 6364937/04.06.2008 and 6364944/04.06.2008 for export of ‘floor covering/woolen carpets 80% wool 20% cotton’ under claim for drawback.
M/s Globlink Overseas’ exports were the subject of proceedings under the Customs Act of 1962 for failing to declare both the amount and the specifications. Even after violations of regulations 13 (d), 13 (e), and 13 (n) were found to be proven, the proceedings against the appellant in this case were closed with the confiscation of the security deposit.
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The appellant’s attorney argued that the adjudicating authority had deemed the appellant to be blemished in those proceedings because the entire case was based on inaccurate details in the shipping bill that was filed on the exporter’s behalf.
Given the ongoing proceedings in which the appellant was ultimately cleared by the adjudication process, the appellant in this case requested that the proceedings, which are now under dispute, be postponed until the adjudication’s outcome was known. The licensing authority declined to do so to the detriment of the appellant. Given the appellant’s changed circumstances and the fact the bench of C J Mathew, Member (Technical), and Ajay Sharma, Member (Judicial), released the appellant from all charges related to the Customs Act, 1962 proceedings. The bench set aside the contested order and returned the case to the licensing authority for a new ruling.
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