The Kolkata Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), recently observed that the suspension of the license of a Customs Broker is not warranted after investigation and issuance of a show cause notice.
The appellant, M/s India Transport & Travel Private Limited, is a customs broker who was issued a Bill of Entry of Customs (Airport and Administration) by the Commissioner of Customs and the appellant filed a bill of entry for warehousing the import consignment of M/s. Eastern Light Industries Pvt Ltd opted for First Check, i.e., a 100% examination of the import consignment.
After First Check, the SIIB (Port) seized the import consignment under Section 110(1) of the Customs Act, 1962, upon the allegation that the consignment of goods, namely “Data Processing Servers,” falling under CTH 84714190, for which the warehousing Bill of Entry filed by the Appellant was not supported by valid documents.
Accordingly, an investigation was initiated by SIIB (Port), and on completion of the investigation and later the customs broker license of the appellant was suspended under Regulation 16(1) of Customs Brokers Licensing Regulations (CBLR), 2018 upon the allegation that the appellants had violated Regulations 10(d), 10(e), 10(f), and 10(m) of Customs Brokers Licensing Regulations (CBLR), 2018 while discharging their duty with respect to the import consignment.
The appellant contended that the investigation has already been concluded by SIIB (Port) and a show cause notice has already been issued. Hence, the immediate action required as specified under Regulation 16(1) Customs Brokers Licensing Regulations (CBLR), 2018 does not arise at a later stage. The suspension under Regulation 16 of Customs Brokers Licensing Regulations (CBLR), 2018 is not a mandatory pre-condition for initiating action under Regulation 17 of Customs Brokers Licensing Regulations (CBLR), 2018.
The appellant further stated that the suspension of the license of the customs broker as provided under Rule 16 (1) of Customs Brokers Licensing Regulations (CBLR), 2018 is necessary only in respect of appropriate cases where ‘immediate action’ is necessary. There cannot be any necessity for ‘immediate action’ after a period of ten months from the date of arrival of the imported consignment in India and a period of more than six months from the date of seizure of the goods.
The Bench of P.K. Choudhary (Judicial Member) and K. Anpazhakan (Technical Member) observed that “Immediate suspension of the customs broker is warranted when there is an apprehension that the customs broker may interfere in the investigation or tamper with any evidence that will be detrimental to the investigation. There is no apprehension, as the investigation has already been completed and a notice issued. Thus, there is no urgent necessity to suspend the license of the customs broker.”
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