CUSAA 8/2020 Page 1 of 29

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IN THE HIGH COURT OF DELHI AT NEW DELHI

Judgment reserved on: 23.05.2022

Judgment pronounced on: 28.07.2022

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CUSAA 8/2020 & CM APPLs.34414/2020 & 13447/2021

M/S LEO CARGO SERVICES THROUGH ITS DIRECTOR

SH. SANJEEV MAGGU

..... Appellant

Through : Mr Akhil Krishan Maggu and

Mr Ashish Batra, Advs.

versus

COMMISSIONER OF CUSTOMS, AIRPORT AND GENERAL,

NEW CUSTOM HOUSE, NEW DELHI

..... Respondent

Through : Mr Harpreet Singh, Sr Standing

Counsel with Ms Suhani Mathur

and Mr Jatin Kumar Gaur, Advs.

CORAM:

HON'BLE MR JUSTICE RAJIV SHAKDHER

HON'BLE MS JUSTICE TARA VITASTA GANJU

[Physical Court Hearing/ Hybrid Hearing (as per request)]

JUDGMENT

TARA VITASTA GANJU, J.:

CM APPL. 13447/2021 [for placing additional document on record] & CM

APPL. 34414/2020 [for placing on record judgment in the context of the

appeal filed on 21.12.2020]

1. No objection to this application has been made by the Respondent and

in any event these are relevant citations in the matter. Hence, these

This is a digitally signed Judgement.

NEUTRAL CITATION NO: 2022/DHC/002894

CUSAA 8/2020 Page 2 of 29

applications are allowed.

CUSAA 8/2020

2. The present appeal has been filed against the order dated 01.10.2019

passed by the Customs, Excise and Service Tax Appellate Tribunal

(hereinafter referred to as the „CESTAT‟).

3. By an order dated 29.03.2022, this Court framed the following

questions of law: -

licence was revoked?”

4. We were informed by the counsel for the Appellant on 23.05.2022 that

the Appellant does not wish to press the second question of law framed

above. Therefore, this judgment is confined to only the following

question: -

Brokers Licensing Regulations, 2013 is directory?”

5. The brief facts relevant for the purpose of this judgment are as follows:-

5.1

Information was received by the Office of Commissioner of Customs

(Airport and General)/Respondent herein from Additional Director,

This is a digitally signed Judgement.

NEUTRAL CITATION NO: 2022/DHC/002894

CUSAA 8/2020 Page 3 of 29

DRI, HQ, New Delhi which stated that one Sh. Sanjeev Maggu,

Director of the Appellant Company/Appellant herein, along with one

other person (Sh. Ramesh Wadhera) were engaged in evasion of

Customs Duty by way of diverting the goods stored in Custom Bonded

warehouses, into domestic market, without payment of customs duty

and, further, that documents to show re-export of warehoused goods

were also being forged/fabricated by the said persons. It was averred

that for the purpose of evasion, allegedly fictitious firms were created

by the Appellant and one Shri Ramesh Wadhera, and Import Export

Codes (IEC‟s) were obtained in the name of:-

(i)

M/s Accturists (OPC) Pvt. Ltd (IEC: 0517503581);

(ii)

M/s Sparx Exports (IEC: 0516517803);

(iii)

M/s Shree Shyam Enterprises (IEC: 0516966839); and

(iv)

M/s Horrens Exim (IEC: 0516516299).

5.2

The information further added that the Appellant and Shri Ramesh

Wadhera had also obtained bonded warehouse(s) in the names of their

employees with fictitious residential addresses, which were used for

diversion of warehoused goods into the domestic market without

payment of customs duty. It was further averred that the aforesaid

persons were utilizing the services of other customs brokers for the

clandestine removal of goods. It was also alleged that the Appellant was

the mastermind and Sh. Ramesh Wadhera was the financier behind the

aforesaid illegal activities.

This is a digitally signed Judgement.

NEUTRAL CITATION NO: 2022/DHC/002894

CUSAA 8/2020