CESTAT upholds Suspension of Customs Broker License against Proven Misdeclaration of Silver, Pen Drives etc as PU-Belt [Read Order]

The Chennai Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) upheld the suspension of a Customs Broker License over the proven misdeclaration of silver, pen drives, and IG-Tropin as 'PU-Belt.

The Revenue-appellant, challenged the Order-in-Original No. 44165/2015 dated 19.01.2016.

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In this case, Freight Link Logistics, respondent-assessee, was involved in a case where its employee colluded with a benami importer to misdeclare a consignment of 100 kgs of silver jewellery, 28,700 pen drives, and 8,000 vials of IG-tropin (human growth hormone) as “PU-Belt,” leading to duty evasion of Rs. 1,08,65,338/-.

The appeal requested the Adjudicating Authority(AA) to reconsider the suspension of the Customs Broker License until proceedings under Regulation 20 of the Customs Brokers Licensing Regulations (CBLR), 2013, were completed.

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The two member bench comprising P.Dinesha(Judicial Member) and M.Ajit Kumar(Technical Member) reviewed the impugned Order-in-Original and noted that the Commissioner found the offence occurred in Mumbai, where the Customs Broker’s License had already been suspended on 05.01.2016. Since the suspension was in effect, the Commissioner saw no need for further action against the Customs Broker or its employees. However, it was clarified that the broker was not absolved of all charges, and proceedings under Regulation 20 of the CBLR would continue.

The appellate tribunal found that the issue fell within the proper officer’s discretion and cited the Supreme Court’s ruling in Narayan Govind Gavate v. State of Maharashtra [(1997) 1 SCC 133], which stated that decisions based on relevant material should not be interfered with by courts. It also noted that the Revenue had not questioned the exercise of discretion by the competent authority.

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Based on these findings, the CESTAT saw no reason to prevent Customs authorities from taking action under Customs law or CBLR provisions, as long as due procedures were followed within the prescribed time frame.

In short,the appeal of the Revenue was dismissed.

To Read the full text of the Order CLICK HERE

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