Case of detection of misuse of Importer and Exporter Code

This case involves M/s Transpeed Logistics Pvt. Ltd. appealing the revocation of their Customs Broker License. The Commissioner of Customs had revoked the license, forfeited the security deposit, and imposed a penalty. This action followed an offence report alleging the misuse of Duty Free Import Authorisation (DFIA) by importers who declared goods incorrectly to gain undue benefits. The exporters had also allegedly obtained DFIA by exporting products using locally sourced agricultural ingredients.

CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL 
NEW DELHI 
PRINCIPAL BENCH 
CUSTOMS APPEAL NO. 51729 OF 2019 

(Arising out of Order-in-Original No. 82/MK/Revocation/Policy/2019 dated 05.07.2019 passed by the Commissioner of Customs, (Airport & General), New Delhi) 

M/s Transpeed Logistics Pvt. Ltd. ……APPELLANT Through ITS F-Card Sh. Lal Chand Sharma

 Versus 

Commissioner of Customs ......RESPONDENT (Airport & General) New Customs House, New Delhi 

APPEARANCE: 
Shri A. K. Maggu, Advocates for the Appellant 
Shri Vivek Pandey, Authorised Representative for the Respondent

CORAM : 
HON‟BLE MR. JUSTICE DILIP GUPTA, PRESIDENT
HON‟BLE MR. P.V. SUBBA RAO, MEMBER (TECHNICAL)

FINAL ORDER NO. 51047/2021

DATE OF HEARING: January 28, 2021 
DATE OF DECISION: February 23, 2021

JUSTICE DILIP GUPTA :

The order dated July 05, 2019 passed by the Commissioner of Customs (Airport and General)1 revoking the Customs Broker License2 of the appellant and also forfeiting the security deposit and imposing penalty has been assailed in this appeal.

2. The records indicate that an offence report dated October 15, 2018 with a show cause notice dated September 28, 2018 was submitted by the Deputy Director, Directorate of Revenue Intelligence to the Commissioner on October 22, 2018. The offence report mentions that certain importers were misusing the Duty Free Import Authorization3 by importing maize popcorn and declaring the same as maize-corn under CTH Code 10059000 and thus availing undue benefits of DFIA. It was also stated that the exporters had obtained DFIA by exporting corn starch, maize starch powder, protein concentrate corn gluten, liquid glucose, maize corn starch, in which locally procured agricultural products had been used as the main ingredient. Acting on the said intelligence, there was an alert which was put on October 26, 2017 through Risk Management Division, Mumbai for the Bills of Entry where the goods were classified under CTH 10059000.

To know more in details find the attachment file