The CHA is not an inspector to weigh the genuineness of the transaction. He is a processing agent of documents with respect to clearance of goods through customs house

2018 (8) TMI 1603 - CESTAT CHENNAI

M/S. GLOBAL AGENCIES VERSUS COMMISSIONER OF CUSTOMS (SEA) , CHENNAI – VIII

Prohibition of appellant-CHA to transact the business under Chennai Customs jurisdiction - Detention of Consignment - undeclared item such as acquarium lamp, plastic light clips, fish tank cleaner and trolley bags found in the consignment - the prohibition order is issued for the reason that the importer has not declared the items.

Held that:- The CHA is not an inspector to weigh the genuineness of the transaction. It is a processing agent of documents with respect to clearance of goods through customs house. It was observed that it would be far too onerous to expect the CHA to inquire into and verify the genuineness of the IEC given to it by a client for each import / export transaction. When such code is mentioned, there is a presumption that an appropriate background check in this regard i.e. KYC etc. would have been done by the customs authorities. Thus, in the present case, IEC was mentioned in the documents. Therefore, appellant cannot be saddled with the obligation that they have not verified the antecedents of the importer namely M/s. J.J. Enterprises.

Also, such continuation of the probation order without prescribing a time-limit would be bye passing Regulation 20 with regard to suspension / revocation of the licence.

Appeal allowed - decided in favor of appellant