Allegations howsoever Strong, cannot take place of Proof: CESTAT sets aside Revocation of Customs Broker Licence for violation of Regulation 10(d) and 10(e) of CBLR

The Customs Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata set aside revocation of Customer Broker Licence which was revoked for violation of Regulation 10(d) and 10(e) of Customs Broker Licencing Regulation (CBLR), 2013.

An investigation was initiated into fake exports for the claim of drawback by a number of exporters; that some of the exporters had reported to have made fake exports of various consignments to Bangladesh through Petrapol Land Customs Station and thereby availed drawback. The said exporters had not furnished Bank Realization Certificates confirming realization of export proceeds and it was the Appellant, M/s. S. K Kanjilal who was appointed as Customs Broker in all the above exports.

The allegation was that such fraudulent activity of the scale involved could not be possible without the abetment and wilful participation of the Appellant and that the Appellant was aware of the above exports and was directly involved in the fraudulent act.

In the order the Principal Commissioner of Customs he has referred to the Inquiry Report which was submitted on 26.08.2019 and the Appellant’s submission and concluded that the findings of the Inquiry Officer that the Appellant had violated the Regulation 10(d) and 10(e) of CBLR, 2018 was correct and thereafter has ordered the revocation of Customs Broker Licence along with the order as to the forfeiture of full amount of the Security Deposit furnished by the Customs Broker as per Regulation 18 of CBLR, 2013.

The Bench consisting of Sanjiv Srivastava, Technical Member and P Dinesha, Judicial Member held that “In any case, other than mere allegations of no advice and no due diligence, as Revenue has not brought on record the role/roles played by the Appellant and that which amounted to connivance etc., since it is the settled position of law that allegations howsoever strong, cannot take the place of proof.

In view of the above discussions, we are of the clear opinion that the revocation of licence was definitely not called for and hence we set aside the impugned order in so far as it relates to the revocation of Customs Broker Licence.”

To Read the full text of the Order CLICK HERE

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