CHA considered as Merely processing agent of documents for Clearance of goods and not inspector to weigh Genuineness of transaction: CESTAT Quashes Revocation of CB License [Read Order]

The New Delhi bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the Customs House Agent (CHA) was considered as merely the processing agent of documents for the clearance of goods and not the inspector to weigh the genuineness of the transaction. 

Durga Link Logistics (Pvt.) Ltd, the appellant assessee was a customs broker who filed the shipping bill online on the Indian Customs EDI System (ICES) and also filed the supporting documents such as invoice and packing list on the portal (e-sanchit) and filed Word copies of these documents which will be kept in a docket in the custom house. 

The assessee appealed against the order passed by the adjudicating authority for confirming the revocation of the customs broker license, forfeiture of the security deposit, and imposition of a penalty of Rs.50,000/-. 

L B Yadhav, the counsel for the assessee contended that the exporter had admitted that the clerical error had occurred in the invoice cum packing list by the staff of the exporter namely, Aakansha Mishra, CHA cannot be held liable for the same and the question arises for violation of Regulation 10(d) of Customs Broker Licensing Regulations (CBLR), 2018. 

Girijesh Kumar, the counsel for the department contended that the assessee as a customs broker had failed to fulfill his obligation under Section 10(b) of CBLR, 2018. 

The Bench observed that the goods were duly sealed by the exporter after obtaining self-sealing permission from the department. Hence, the assessee had no occasion to verify the quantity and weight of the goods sealed and the assessee had no means to verify the item-wise quantity or weight of the goods and, as, a customs broker, he was not required to do so. 

Also observed that in the case of Perfect Cargo & Logistics Vs CC (A&G), the court held that the customs house agent merely processing agent of documents concerning the clearance of goods and not the inspector to weigh the genuineness of the transaction and that if the documents submitted to G- card holder. 

The two-member bench comprising Rachna Gupta (Judicial) and Subba Rao (Technical) held that the assessee as a customs broker was not liable to inspect the genuineness of the transaction. 

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