Sharing of G-Card Credentials Led to Misdeclaration of Import Consignment: CESTAT Upholds Revocation of Customs Broker Licence [Read Order]
The tribunal found that Shri Nitesh Patel, authorised by GMC & Co. (assessee) through a Power of Attorney, had shared his ID and password with a third party.
![Sharing of G-Card Credentials Led to Misdeclaration of Import Consignment: CESTAT Upholds Revocation of Customs Broker Licence [Read Order] Sharing of G-Card Credentials Led to Misdeclaration of Import Consignment: CESTAT Upholds Revocation of Customs Broker Licence [Read Order]](https://images.taxscan.in/h-upload/2025/07/15/2063923-customs-broker-license-taxscan.webp)
The Kolkata Bench of Customs,Excise and Service Tax Appellate Tribunal ( CESTAT ) upheld the revocation of a Customs Broker Licence, observing that the misdeclaration of import consignments was caused by the G-card holder, sharing his login credentials with a third party.
GMC & Co.,appellant-assessee, had authorised Shri Nitesh Patel, a G-card holder, through a Power of Attorney to act as a Customs Broker at Mumbai Customs. Based on an Offence Report dated 08.09.2017 from DRI, Mumbai, alleging irregularities committed by Shri Patel, proceedings were initiated against the assessee.
Step by Step Guidance for Tax Audit & E-filing, Click Here
The report referred to two Show Cause Notices involving importers Bright Traders and Bright Ways, concerning mis-declaration, MRP valuation issues, BIS violations, and undervaluation. Investigations revealed that the importers admitted to the irregularities.
Relying on these findings, the assessee’s Customs Broker Licence was first suspended and later revoked on 06.06.2018. Aggrieved by the revocation, the assessee filed the present appeal.
The assessee counsel argued that Shri Nitesh Patel was a valid G-card holder and his appointment was proper. It was stated that although he may have taken help from others for filing Bills of Entry, there was no evidence that the Customs Broker Licence was sold or transferred. No payment was made to the appellant for using the licence, and seeking assistance in routine work was common in the trade.
Also Read:Customs Broker Suspension Over Delayed SCN: CESTAT Quashes Suspension Treating SCN as Time-Barred and Without Jurisdiction [Read Order]
The counsel submitted that the mis-declaration and undervaluation were admitted by the importers, and there was no proof that the assessee or Shri Patel was aware of it. A third person, Shri Pragnesh Gandhi, had introduced the importers to Shri Patel and was not part of the assessee’s firm.
It was argued that the allegation of licence transfer was based on assumptions, which could not justify such a serious charge. The counsel relied on a past tribunal decision upheld by the Calcutta High Court and requested the revocation order be set aside.
Get a Complete Kit of Essential Books for Daily Practice, Click Here
In response, the departmental representative supported the revocation, stating that Shri Patel had shared login credentials with Shri Gandhi, which amounted to a transfer of the licence.
The two member bench comprising AshokJindal (Technical Member) and K.Anpazhakan (Technical Member) heard both sides and considered the matter. It found that the assessee’s G-card holder, Shri Nitesh Patel, had shared his ID and password with Shri Pragnesh Gandhi, which allowed him to misuse the Customs Broker Licence. This led to misdeclaration of imported goods.
The tribunal held that such sharing of credentials, though common, caused serious misuse in this case. It stated that the misdeclaration could have been avoided if the access had not been given.
Considering these facts, the CESTAT found the licence revocation justified. It upheld the order and confirmed the forfeiture of the security deposit. The appeal was dismissed.
Support our journalism by subscribing to Taxscanpremium. Follow us on Telegram for quick updates