The Kolkata bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) quashed the revocation of the Customs Broker License on illegal import of food supplements on the ground of non-violation of regulation 18 of the Customs Broker Licensing Rules(CBLR),2013.
RDR Clearing Agent, the appellant assessee was a Customs Broker to handle import and export consignments and requested to facilitate the clearance of the consignment on behalf of the importer Exim International.
The assessee appealed against the order passed by the Commissioner of Customs for revocation of the Customs Broker License and forfeiture of the Security Deposit, amounting to Rs. 75,000 under Regulation 18 of the Customs Brokers Licensing Regulations (CBLR), 2013.
S. K. Mohapatra and Sudipta Ghosh, the counsels for the assessee contended that in case of any violation of terms and conditions of the Exemption Notification by the importer, invocation of the terms and the conditions of Bond including that of re-export Bond was the exclusive liability of the Departmental Officer and in no way the responsibility can be shifted to the Customs Broker.
Faiz Ahmed, the counsel for the department relied on the decisions made by the lower authorities and contended that the assessee had violated Regulation 18 of the CBLR and the revocation of the License was as per the law and liable to be sustained.
The Bench observed that in the case of World Cargo Movers vs. Commissioner, the court held that illegal acts/misdeeds of employee cannot be said to have been committed with preconcert, knowledge, or connivance of the assessee or in the course of his employment with the assessee, hence, the assessee cannot be held vicariously liable for such acts particularly when there was no other violation on the part of the assessee as a Customs Broker.
The two-member bench comprising Muralidhar (Judicial) and Anpazhakan (Technical) quashed the revocation of the Customs Broker License and forfeiture of the Security Deposit while allowing the appeal filed by the assessee.
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