The Bangalore Bench of the Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ) quashed the allegation of violation of Regulation 10(d) of the Customs Broker Licensing Regulation, 2018 ( CBLR ) and observed that the duty is cast on the Customs Broker to advise clients to comply with the provision of law.
show cause notice was issued and on conclusion of the proceedings, Adjudication authority as per the impugned order revoked the Customs Broker license of the Appellant and also ordered for forfeiture of the security deposit of Rs. 75,000/-. In addition to that, Adjudication authority also imposed penalty of Rs.50,000 under Regulation 18(1) of Customs Broker Licensing Regulation, 2018. Aggrieved by said order, the present appeal was filed.
Regarding the issue on merit, the Counsel for the appellant drew the attention to the 10(d) of the Customs Broker Licensing Regulation, 2018, where Appellant is obliged to advice his client to comply with the provisions of Act and in case of noncompliance, Customs broker shall bring the matter to the notice of the Deputy Commissioner of Customs or Assistant Commissioner of Customs.
The counsel submitted that none of the notices have deposed that Appellant herein has not advised them about the provision of law and that when Appellant had reason to believe that some of the consignments are imported in violation of the provision of law, it was brought to the notice of the Deputy Commissioner of Customs vide letter dated 12.09.2019. However, no proceedings were initiated by the respondent.
The Authorised Representative (AR) for the Revenue reiterated the finding in the impugned order and submits that the evidence available on record clearly shows that the Appellant was aware about the illegality committed by the overseas agencies, who had imported non-bonafide baggage in the name of passengers. Regarding compliance of Section 138C of Customs Act, 1962.
A Two-Member Bench comprising P.A. Augustian, Member (Judicial) and Pullela Nageswara Rao, Member (Technical) noted that “The responsibility of Customs Broker is only to advise the importer regarding concerned provisions only when it is brought to the notice of the Customs broker that the goods imported by the passenger or importer is imported or being exported in violation of any provision of law. In the present case, there is no way for the Customs broker to find out whether the baggage brought by the passenger belongs to them or any other person.”
“If the overseas agency had induced the passenger to carry the goods belongs to other NRIs though unaccompanied baggage of a passenger by offering any amount, in the absence of any knowledge regarding such offer till the filing of baggage declaration, the proceedings initiated against the appellant is unsustainable. Thus, the finding regarding alleged violation of the provision of Regulation of 10(d) of the CBLR 2018 is unsustainable” the Tribunal noted.
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