Custom
TRT-2025-
Cestat-New Delhi
Date:-22-07-22
In:-
Issue Favourable to Tax Payer ?:- 0
Order date – 22 July 2022
Facts –
- The Appellant, M/s Star CHA Management Services LLP, was in a Limited Liability Partnership with two partners. The appellant obtained a Customs Broker License on 21.07.2014. On 20.06.2017, one of the partners Ashu Chauhan expired.
- On 11.12.2017 a new partnership deed in terms of section 7 of the Limited Liability Act, 2008 was created. The details of reconstituted partnership deed were registered with Ministry of Corporate Affairs on 01.09.2018.
- The appellant filed their first Bill of Entry on 06.10.2018 and on 10.10.2018 intimation was filed with Customs for addition of new partners in the Customs record.
- Proceedings were initiated against the appellant for violating the Customs Broker Licensing Regulation, 20184 as the appellant failed to follow the second proviso to Regulation 7 (2) of CBLR, 2018.
- The Commissioner of Customs ordered for forfeiture of security deposit of Rs. 5 lakhs and a penalty of Rs. 50,000/- was imposed on the appellant.
- Aggrieved the appellant filed an appeal.
Issue –
- Whether the order passed by commissioner is maintainable?
Order –
- The Tribunal observed that Regulation 13 of the CBLR, 2013 clearly lies down that the change of constitution of a Customs Broker needs to be communicated within 60 days from the date of such change for the grant of license under Regulation 7.
- In the instant case, the change was made on 11.12.2014 but it was reported only on 10.10.2018 after a considerable delay. In view of above, there is a clear violation of CBLR, 2013 under which the appellant was licensed. But considering the fact that one of Appellant’s partners died and he was not in a right frame of mind, the Tribunal took a lenient view.
- The Tribunal held that this case is not of a significant violation but only that of a delay in reporting. Moreover, the appellant did not process any document during this period.
- Therefore, the order the forfeiture of security deposit of Rs. 5 lakhs was set aside but the penalty of Rs. 50,000/- on the Customs Broker was confirmed for this lapse.
Download Case Law
