Providing login credentials to a person who is not authorised to file Shipping Bills: CESTAT confirms Revocation of Customs Broker Licence [Read Order]

The New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), confirmed the revocation of customs broker licence on the ground of providing login credentials to a person who is not authorised to file shipping bills.

The appellant, M/s Paramount Cargo & Logistics Solutions, was licensed by Commissioner of Customs (Import &General) and the Shipping Bill was filed to export goods from the Air Cargo Complex, New Delhi. Investigations revealed that one Ashish filed the papers to seek clearance of the consignment using the credentials of the appellant but he had no authority in the firm of the appellant Customs Broker.

It was also admitted to the Delhi Police that Ashish had exported several such consignments of NDPS concealed in the goods and he had filed all the papers for such exports using the Customs Broker’s licence of the appellant. It appeared to the respondent that the appellant had allowed Ashish, who is not their authorised person, to mis-utilise its licence to smuggle narcotic drugs and psychotropic substances and the appellant’s Customs Broker licence was suspended.

The only case in this appeal against the appellant is that it had allowed Ashish to use its credentials to file the export documents in the case which it could not have done because the Customs Broker should operate by himself (‘F’ card holders) or through its employees (‘G’ card holders). The case of the Revenue is that by allowing Ashish to use its credentials, the appellant violated several provisions of the Customs Brokers Licensing Regulations Customs Brokers Licensing Regulations (CBLR), 2018 and hence the impugned order taking action under CBLR, 2018.

The stand of the appellant is that Ashish Sharma personated as the appellant and did the work and thereby cheated the appellant. Therefore, by personating the appellant, Ashish could have only done these. In other words, the shipping bill was filed using the credentials of the appellant by Ashish and not by the appellant.

Confirming the revocation of customs broker licence, the Bench comprising P. Venkata Subba Rao, Member (Technical) and Dr. Rachna Gupta, Member (Judicial) observed that “Thus, we find based on the facts available on record, Ashish Sharma filed the Shipping Bill, using the credentials of the appellant which would not have been possible without the appellant lending his licence to him by providing the login credentials as well as the digital signature.”

To Read the full text of the Order CLICK HERE

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