The doctrine of proportionality applies in administrative actions, requiring penalties to be commensurate with violations identified.

JUDGMENT

Prathiba M. Singh, J.

1. This hearing has been done through hybrid mode.

2. The present appeal has been filed by M/s ECG Easy Connect Logistics Pvt. Ltd., which is an authorised courier agent having a courier licence bearing No. DEL/POUCOUR/18/2018-19, issued by the Commissioner of Customs (General), New Delhi, which is valid until 4^th March 2031.

3. The business of the Appellant is in the nature of Customs clearance through courier mode and the Appellant is registered as an authorised courier agent since 2018.

4. The background giving rise to the present appeal is that the Appellant acted as a courier agency for imports by two entities namely M/s Kripa Shankar Maurya and M/s Mangalmurti Traders (hereinafter, ‘the importers’). All the documents including the bills of entry, invoices, etc., were submitted by the Appellant with the Customs Department for clearance of the imported goods.

5. The Customs Department, thereafter, alleged that there was misdeclaration by the Appellant in the said consignment of imported goods in terms of quantity, value, description and classification which led to a Show Cause Notice (hereinafter, ‘SCN’) being issued to the importers, as also to the Appellant, which was the courier agency involved in the import of the said consignments.

6. The said show cause notice-cum-suspension order was issued on 27^th November 2020 and the Appellant’s operations were initially suspended with immediate effect i.e. from the same date itself. An inquiry was conducted and pursuant to a report dated 13^th January 2021, the Appellant was found not guilty.

7. Thereafter, vide Order-in-Original dated 5^th February 2021, the Commissioner of Customs (Airport and General) held that the Appellant had abided by all provisions of the Acts and the Rules, Regulations, Notifications and Orders thereof. The operative portion of the said Order-in-Original dated 5^th February 2021 reads as under:

“ORDER

In exercise of powers conferred in terms of Regulation 13 read with Regulation 14 of CIER, 2010:

(i) I refrain from revoking the courier Registration No. DEL/POL/COUR/18/2018-19 (PAN No. AAFCE0636C) valid up to 04-03-2021, of M/s ECG Easy Connect Logistics (P) Ltd, as proposed in the Show Cause Notice cum Suspension Order No. 24/ MK/ Suspension/ Policy/ 2020 dated 27-11-2020.

(ii) I refrain from forfeiting the security submitted at the time of issuance of the courier Registration No. DEL/POL/COUR/ 18/2018-19 which was valid up to 04-03-2021 of M/s ECG Easy Connect Logistics (P) Ltd, as proposed in the Show Cause Notice cum Suspension Order No. 24/MK/Suspension/ Policy/2020 dated 27-11-2020.

(iii) I refrain from imposing any penalty upon M/s ECG Easy Connect Logistics (P) Ltd However, I caution them to be more careful in future in complying with provisions of CIER, 2010.”

8. Thereafter, proceedings were again initiated against the Appellant with respect to the same transactions under the Courier Imports and Exports (Electronic Declaration And Processing) Regulations, 2010 (hereinafter, ‘CIER’) vide SCN dated 30th September, 2021 wherein the Appellant was called upon to show cause as to why penalty under Section 114AA of the Customs Act, 1962 , should not be imposed on them. In respect of the said proceedings, supplementary SCN was issued to the Appellant on 22nd September, 2022.

9. Pursuant to the SCNs mentioned above, the Order-in-Original dated 17^th July, 2023 came to be passed by which the Additional Commissioner of Customs refrained from imposing any penalty upon the Appellant.

10. Du