The Principal Bench of New Delhi Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has held that the Customs broker license revocation proceedings based on an invalidated earlier offence report are not sustainable.
Shri Devesh Tripathi, Advocate appeared for the Appellant and Shri Nagendra Yadav, Authorised Representative appeared for the Respondent.
The appeal was filed by M/s. HLPL Global Logistics against the order dated 30.09.2020 passed by the Commissioner of Customs (Airport & General) by which the Customs Broker License of the appellant has been revoked by exercising powers under regulation 14 of the Customs Broker Licensing Regulations, 2018.
In the investigation initiated by the Directorate of Revenue Intelligence against 21 exporters who were exporting man-made floor coverings and were claiming duty drawbacks under the Focus Product Scheme by allegedly resorting to overvaluation and misdeclaration.
During the examination, samples were drawn and it was observed that the floor covering was machine-made and not handmade. On 16.02.2015 an offence report was forwarded to the Commissioner of Customs by DRI and on 24.02.2015 the license of the appellant was suspended. The suspension was confirmed on 23.03.2015.
The Delhi High Court by judgement dated 24.05.2016, quashed the show cause notices on the ground that the offence report was the letter dated 16.02.2015 sent by DRI and not the show cause notices dated 24.09.2015 or 19.09.2015and held that all three show cause notices proposing revocation of the licenses were issued beyond the mandatory period of 90 days.
A CoramMr Justice Dilip Gupta, president and Mr P V Subba Rao, member (technical) viewed that the Department committed an error in initiating proceedings for revocation of the Customs Broker License of the appellant by issuing the show cause notice dated 24.01.2020 treating the show cause notice dated 22.10.2019 as the offence report.
The Tribunal observed that the appellant had filed only one Shipping Bill No. 5199084 dated 25.09.2014 in respect of M/s. Dwarka Trading Company and this Shipping Bill were considered in the earlier show cause notice dated 02.02.2016, which had been quashed by the Delhi High Court and thereby set aside the impugned order dated 30.09.2022 passed by the Commissioner. The appeal was allowed.
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