Smuggling of Narcotics Comprises National Security, Ruins Indian Youth: CESTAT Decides on CB License [Read Order]

The Customs, Excise and Service Tax AppellateTribunal (CESTAT), Ahmedabad Bench, decided on Custom Broker’s license. The tribunal opined that smuggling of narcotics comprises national security and ruins Indian youth.

The matter pertained to the illegal import of Heroin in the garb of semi processed Talc stone by M/s Vyom Fashion Surat. The appellant was a Customs Broker in the matter who processed import documents including filing of bill of entry for the consignment.

The container was picked up for scanning at Mundra port which red flagged the consignment with remarks “container mismatch”. The examination report mentioned “opened and examined one package in the presence of CHA”. The case was taken over by the National Investigation Agency who recorded statements of various concerned persons including the proprietor of the appellant firm.

Proceedings were initiated against the appellant for revocation of Custom Broker’s licence under Custom Brokers Licensing Regulations (CBLR) Rules, 2018. The Commissioner of Customs, Kandla suspended the Broker’s license under Regulation 16(1) of CBLR against which an appeal was filed before the CESTAT.

The counsel for the appellant pleaded that the department is conducting enquiry for revocation of CB license and suspension of the same is unwarranted. The counsel contends that the suspension should be revoked and cited certain precedents to this effect.

The opposing counsel argued that the appellant should have been more vigilant as this was the first import consignment of Vyom Fashion and was completely unrelated to their regular trade.

The tribunal observed that the appellant failed to exercise due diligence in verifying the genuineness of the person who was interacting with them on behalf of the importer and handed over KYC documents for processing and filing a bill of entry. Reiterating a judicial precedent, it was said that the role of the Customs Broker is of great responsibility in the customs operations and it is for this reason, a licence is issued only after conducting an examination and after necessary background verification.

The bench of Dr. Ajaya Krishna Vishvesha (Judicial Member) and Satendra Vikram Singh (Technical Member) thus dismissed the appeal for revocation of suspension and directed that the inquiry proceedings be completed according to the timelines set in CBLR.

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