CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL, MUMBAI REGIONAL BENCH - COURT NO. I CUSTOMS APPEAL No. 87233 of 2024 (Arising out of Order-in-Original No. 137/2024-25/COMMR/SCMTR/NS-G/CAC/JNCH dated

06.09.2024 passed by Commissioner of Customs (General), JNCH, Nhava Sheva.)

Aiyer Shipping Agency Private Limited …..Appellants

1201/1202 Meraki Areana, Opposite R.K. Studio Sion Trombay Road, Chembur Mumbai – 400 071.

VERSUS Commissioner of Customs (General) …..Respondent Jawaharlal Nehru Customs House (JNCH)

Nhava Sheva-Customs General Commissionerate Nhava Sheva, District Raigad Maharashtra - 400 707.

APPEARANCE:

Shri Rafiq Mohammed, Advocate for the Appellants Shri Rajiv Ranjan, Authorised Representative for the Respondent CORAM:

HON’BLE MR. S.K. MOHANTY, MEMBER (JUDICIAL)

HON’BLE MR. M.M. PARTHIBAN, MEMBER (TECHNICAL)

FINAL ORDER NO. A/85866/2025 Date of Hearing: 07.02.2025 Date of Decision: 06.06.2025 PER : M.M. PARTHIBAN This appeal has been filed by M/s Aiyer Shipping Agency Private Limited, Mumbai (herein after, referred to as ‘the appellants’), assailing Order-in-Original No. 137/2024-25/COMMR/SCMTR/NS-G/CAC/JNCH dated 06.09.2024 (herein after, referred to as ‘the impugned order’) passed by Commissioner of Customs (General), JNCH, Nhava Sheva Customs General Commissionerate, Nhava Sheva.

2.1 Brief facts of the case, leading to this appeal, are summarised below: 2.2 The appellant herein, M/s Aiyer Shipping Agency Private Limited, Mumbai, is a company registered as an ‘Authorised Sea Agent’ (ASA) under Sea Cargo Manifest and Transshipment Regulations, 2018 (referred to as SCMTR, 2018 for short) in the jurisdiction of Commissionerate of Customs (General), JNCH, Nhava Sheva. There were two Shipping Bills (S/Bs) viz., S/B Nos. 7304634 and 7304635 both dated 07.01.2022 filed for export of 297.541 MTs of ‘SHG Jumbo Zinc (minimum of 99.995%) in 12 containers by the exporter M/s Hindustan Zinc Limited through their customs broker (CB) M/s Western Carriers (India) Limited. Since, the exporter was exporting the goods under self-sealing procedure with electronic/e-seal verification, the containers arrived at the JNCH, Nhava Sheva port under Direct Port Entry (DPE) procedure at Jasai holding yard on 09.01.2022 (Sunday) and subsequently the containers were moved inside the JNCH port terminals on the same day for export through the vessel ‘MV Thorsky’. In respect of the above exports, the customs broker was able to present the assessed S/Bs for obtaining Let Export Order (LEO) only on 10.01.2022, and as the vessel was scheduled to depart/sail on 09.01.2022, the LEO copy of S/Bs could not be presented to the master of the vessel before it was leaving the port of export, and while processing the S/Bs for allowing drawback on exports, the error message of “LEO date greater than sailing date” appeared in the customs EDI system. Therefore, the appellants had taken up the matter of rectifying the EGM error, by filing request letter to the proper officer of customs on the basis of letter given by the shipping company dated 12.05.2022.

2.3 The matter was investigated by the departmental authorities and on the basis of facts and evidences available on record, and order-in-original dated 14.03.2024 was passed by the learned Commissioner of Customs ordering for suspension the operations of M/s Aiyer Shipping Agency Pvt. Ltd. from 01.04.2024 to 15.04.2024 and imposed penalty, redemption fine for violations of section 33, 34, 39, 40 & 41 of the Customs Act, 1962 and also imposed penalty under regulation 11 of the SCMTR, 2018, for failure to comply with provisions of regulations 5 & 10(1)(m) of the SCMTR, 2018. In this regard, the appellants have filed a Writ Petition No.4816 of 2024 before the Hon’ble High Court of Bombay on the ground that no opportunity of hearing was given to them before a drastic order affecting their livelihood was passed. On hearing the said case, the Hon’ble High Court vide its judgement dated 28.03.2024 had quashed the said order dat