The Kolkata bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the immediate suspension of the Customs Broker was warranted when there was an apprehension of interference in the investigation.
SP Agency, the appellant assessee imported one consignment of decorative items such as balloons, banners, an electric balloon pump, a kid brush, mini-LED clips light, PVC wall decorative items, ribbon, inflatable PVC items, etc.
The assessee appealed against the order passed by the Principal Commissioner of Customs (Airport & Administration), Kolkata for suspension of the license of the Customs Broker.
Rahul Tangi and Shovit Betal, the counsels for the assessee contended that suspension of license is not warranted in the instant case since the requirement of Regulation 16 (1) of the Customs Broker Licensing Rules (CBLR), 2018 has not been fulfilled.
Also submitted that hat the action was required immediately and in this case, the suspension has been allowed between the date of cause of action and the date of suspension of license. Therefore, such delay does not require action under Regulation 16 (1) of CBLR.
Tariq Salman, the counsel for the department contended that the assessee had deliberately acted for evasion of duty on the imported goods. Therefore, the suspension of the license was correctly done by the Adjudicating Authority.
The Bench observed that in the case of Shakti Cargo Movers vs. Commissioner of Customs, the court held that immediate suspension of the Customs Broker was warranted when there was an apprehension that the Customs Broker may interfere in the investigation or tamper with evidence to prejudice the investigation.
The two-member bench comprising Ashok Jindal (Judicial) and Rajeev Tandon (Technical) held that the suspension of the customs broker license was not as per the law and was liable to be deleted.
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