Order date – 15 September 2022

Facts – 

• The Appellant, M/s Meghna Clearing and Forwarding P. Ltd., filed two manual shipping bills dated 23.07.2015 and 24.07.2015 as CHA for M/s. Mesto India Pvt. Ltd. at SEZ, Panvel through M/s. DHL Logistics Pvt. Ltd., an authorised Appellant as C & F Agency engaged to complete the formalities and clearance at ACC, Sahar, Mumbai.
• Ground Handling Agency (GHA) M/s. Cambata Aviation Pvt. Ltd. handled the same for export but it did so without the examination and endorsement of the EFO and without Let Export Order from the proper Officer of Customs.
• During investigation it was held the goods liable for confiscation under Section 113(g) of the Customs Act with imposition of penalty on Appellant CHA and the GHA.
• Imposition of penalty was confirmed under Section 114(iii) of the Customs Act but it was reduced from Rs.2,00,000/- to Rs.50,000/- on the ground that no intentional action was forthcoming on the part of Appellant in such an act of export without Let Export Order.
• Aggrieved, the appellant filed an appeal.

Issue – 

• Whether the appellant is liable to pay penalties on the ground that no intentional action was forthcoming on the part of Appellant in such an act of export without Let Export Order?

Order – 

• The Tribunal observed that CHA Licencing Regulation is an offshoot of the Customs Act and Customs Act is broad enough to encompass all kinds of violations. 
• Para 13(12) of the CHA Licencing Regulation, 2004 reads “The Customs broker shall exercise such supervision as may be necessary to ensure proper conduct of his employees in the transaction of business and he shall be held responsible for all acts and omissions of his employees during their employment.”
• Therefore, for act of the employee direct responsibility is fixed on the Customs broker for which the findings of the Tribunal at Bangalore in the case of A.S. Gopinath Vs. Commissioner of Customs, Cochin (2007) cannot help the Appellant in getting the desired remedy.
• Therefore, the appeal was dismissed and the order passed by the Commissioner of Customs (Appeals), Mumbai imposing penalty under Section 114(1) of the Customs Act for Rs.50,000/- on the Appellant CHA was confirmed.