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2020 (9) TMI 268 - AT - CustomsSuspension of Customs Broker License - over-valuation of ‘rough diamonds/precious stones’ - regulation no. 16(2) of Customs Brokers Licensing Regulations, 2018 - HELD THAT:- The procedure laid down, in regulation 17, as a prerequisite for revoking of the license, or for imposing a penalty under regulation 14 of the said Regulations, are not mandated to be gone through before suspension. Nevertheless, five essential aspects must be complied with; an enquiry against the broker is pending or contemplated, immediate action is necessary, an opportunity to be heard to be granted within fifteen days from the date of such suspension, passing order of revocation, or continuation, of suspension within fifteen days from the date of hearing and, in the event of the latter, to be followed by initiation of proceedings under regulation no. 17 with adherence to all the timelines therein - The business activities of an importer or exporter, against whom proceedings are initiated under Customs Act, 1962, are not jeopardised as it is only the impacted consignments that are interdicted. Any deviation from the procedures for suspension, revocation or penalising has to be approached with due responsibility and, owing to the unsupervised exercise of power, will have to be at the cost of the detriment being overruled. In no uncertain terms, that statutory actions against customs broker, the hyphen that connects the importer/exporter with the customs authorities and, thereby, administratively accountable to the licensing authority, are to be interfered with only for colourable decisions, adjudged against prescriptions in the Regulations and proportionate deprivation by such authority. The temptation to take a stick to an underling for any real, or perceived, misdemeanour is as old as the master-servant institution and which the wheels of justice must, unhesitatingly, obliterate. For lapses in import and export in which breach of the obligations prescribed in Customs Broker Licensing Regulations, 2018, the licensing authority is empowered, under regulation no. 14 of Customs Broker Licensing Regulations, 2018, to revoke the license and/or to impose appropriate penalties, subject to compliance with procedure laid down in regulation no. 17 of Customs Broker Licensing Regulations, 2018. This process could take as long as six months, as per prescribed timelines, for investigations, issue of notice comprising specific charges of violation, conduct of enquiry in hearing, furnishing of a report of enquiry, response of the broker and culminating in issue of speaking order by the licensing authority. In the meanwhile, the continued validity of the licence would entitle the broker to carry on normal activities which may, in specific circumstances, be prejudicial to public interest and, regulation no. 16 of Customs Broker Licensing Regulations, 2018 permits temporary validation subject to certain basic procedural prescriptions. In the present instance, the gap of more than a year since the alleged overvaluation was attempted, and the continued operation of the appellant as a customs broker since then, does indeed raise doubts about the urgency for suspension. We find that the impugned order has not recorded any justification for curtailing the broking operations of the appellant at this stage. The Regulations do not into envisage suspension to be retribution for alleged wrongdoing for which separate provisions exist and which should already have been initiated if the licensing authority is serious about compliance with the timelines prescribed therein. Appeal allowed - decided in favor of appellant.
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