Case of detection of misuse of Importer and Exporter Code

Last updated: 09 March 2021

Court :
CESTAT Delhi)

Brief :
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.

Citation :
Customs Appeal No. 51729 of 2019

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.

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