CESTAT directs Commissioner to decide SCN which proposes Revocation of Customs Broker License [Read Order]

In a significant judgement, the Delhi Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT)directed the  Commissioner to decide on a Show Cause Notice (SCN) which proposesthe revocation of the Customs Broker license.

M/s Global Forwarders Inc., the appellant challenged the order-in-originaldated 07.11.2022 passed by the Commissioner which confirmed the suspension of the customs broker licence of the appellant under Customs Broker Licensing Regulation, 2018.

The appellant is licenced as Customs Broker by the Commissioner of Customs (Preventive), Jodhpur and was entitled to operate throughout the country. It filed a shipping bill dated 26.06.2021 on behalf of M/s ZED International, Inc. at Air Cargo (Export), New Delhi. The consignment was examined by the officers of Customs and a show cause notice was issued to the exporter and also to the appellant proposing action under various provisions of the Customs Act, 1962.

After examining the SCN, the Commissioner of Customs issued an order on 14.10.2022 suspending the customs broker licence of the appellant.It was alleged that the appellant as Customs Broker has contravened the Regulation 10 (d), 10 (e) and 10 (n) of CBLR, 2018 for the reasons that the appellant stated that he did not verify the antecedents of the exporter by a visit to his premises and also that there was the difference in declared value of the export goods and value arrived at by Market survey.

Provisions 10 (d) and 10 (e) have been invoked for the reasons that the appellant failed to ascertain the correct value of the export consignments. The value declared was proposed to be reduced consequently to a market enquiry by the Customs.

Further, the provisions of Regulation 10 (n) are invoked for the failure of the appellant to verify the antecedents and he admittedly did not visit the premises of the exporter to verify the KYC documents.

It was contended by the appellantthat there was undue delay in issuing the impugned order considering that the alleged irregularity took place on 26.06.2021 and the suspension order was issued only on 14.10.2022.

It was viewed that simply because a suspicion has arisen in a particular case it is not sufficient ground to suspend the licence of the customs broker who handled such imports/exports. Only after necessary enquiry, and investigation if a prima facie case is found against the customs broker can its licence be suspended.

A Coram comprising of Mr P V Subba Rao, Member (Technical) and Ms Binu Tamta, Member (Judicial) observed that after the impugned order, the Commissioner issued SCN dated 29.11.2022 proposing revocation of the licence and the appellant had, within a month, submitted its reply to the SCN dated 29.11.2022 on 26.12.2022. The enquiry officer submitted his report on 02.01.2023. All that is pending is the final decision by the Commissioner regarding the revocation of the licence. The Tribunal viewed that there is no ground to revoke the suspension of the Customs Broker Licence of the appellant at this stage.

The Tribunal further requested the Commissioner to decide the SCN dated 29.11.2022 which proposes revocation of the licence as soon as possible, preferably within a month from the receipt of this order. The appeal filed by the appellant is dismissed and upheld the impugned order. 

To Read the full text of the Order CLICK HERE

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