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2021 (9) TMI 193 - AT - CustomsLevy of penalty on Customs Broker u/r 18 of the CBLR, 2013 - violation of provisions of Regulation 11(a), 11(d) and 11(n) of CBLR, 2013 - allegation is on the ground that authorization / KYC documents was obtained from middleman instead of importer directly - conclusion of allegation without informing the Customs Broker - fair opportunity of hearing not provided - principles of natural justice - HELD THAT:- These Regulations are in the nature of disciplinary rules for a Customs Broker. Revocation of license is a major punishment which affects the livelihood of not only the Customs Broker but also those persons who are employed under him. The punishment being of such major nature, Regulation provides for the conduct of inquiry before adjudication of the Show Cause Notice issued to the Customs Broker. The inquiry proceedings is a measure to be cautious and to give sufficient opportunity to the person whose conduct is the subject matter of the Show Cause Notice. The purpose of such inquiry is to help the adjudicating authority to derive at proper conclusion based on all materials and facts that have been collected during the inquiry. The first stage of such inquiry as laid down in the Regulation is to collect material / statements so as to give opportunity to those persons who are required or relevant to be heard. In the second stage, the Regulation provides for giving opportunity to the Customs Broker to cross-examine those persons whose statements have been recorded. The Inquiry Officer should support his conclusion with reason. The principles of natural justice requires that a copy thereof recording the reasons of disagreement has to be supplied to the Customs Broker so that he is able to reply to the charges levelled against him as against the conclusions arrived by the Inquiry Officer. Thus, the adjudicating authority is bound to put to notice the Customs Broker, setting out tentative conclusions or the points on which he differs from the Inquiry Officer. This would facilitate and ensure the right of Customs Broker to defend his case - In the instant case, though the Inquiry Officer has reported that there is no violation under Regulation 11(a), (d) and (n) of the CBLR, 2013 the adjudicating authority has proceeded to conclude that there is violation of 11(a) and 11(n), without informing the Customs Broker on the ground of disagreement with the inquiry report. The finding rendered by the adjudicating authority that the appellant has violated Regulation 11(a) and 11(n) are without any factual or legal basis and requires to be set aside - penalty set aside - appeal allowed - decided in favor of appellant.
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