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2023 (5) TMI 1032 - AT - CustomsRevocation of Customs Broker licence - forfeiture of security amount under Regulation 14 of the Customs Broker Licensing Regulation, 2018 (CBLR) - imposition of penalty of Rs.50,000/- under Regulation 18 of CBLR - even after absolution of liabilities in the inquiry report is assailed - HELD THAT:- On perusal of the entire proceeding with reference to the procedure mentioned in the CBLR for revocation of licence and imposition of penalty, it is noted that the entire proceeding conducted by the Principal Commissioner of Customs (General) was irregular and unsupported by any legal provision for the reason that after serving show-cause notice on dated 25.11.2021 to the Appellant, causing and completing inquiry by 21.03.2022 concerning legality of suspension of licence made on 07.09.2021 which was admittedly done beyond 90 days without any justifiable excuse, he had issued a disagreement memo to the inquiry in which the charges were not proved despite the fact that Regulation 17(6)&(7) had not contemplated such a mechanism. In the instant case the report of inquiry was not furnished to the Appellant seeking his response in compliance to para 6 of Regulation 17 apparently for the reason that the report was not against the Appellant. However, in complete disregard of the report and in the absence of a representation from the Appellant Customs Broker, the Commissioner had prepared a disagreement memo instead of passing an order revoking the suspension of the licence or, in the worst scenario, confirming the revocation of licence itself, in compliance to para 7 though before such revocation order Appellant was noticed to submit his response. However, a close reading of para 7 of the Regulation 17 would clearly indicate that the Commissioner was only empowered to consider the inquiry report and representation of the Customs Broker, if made against such report - To bring more clarity to this provision, it may be said that only when the report is against the Customs Broker, his representation is to be considered against the adverse report before passing any order and it has never empowered the Principal Commissioner of Customs (General) or the Commissioner of Customs to proceed against the Customs Broker even when the inquiry report, prepared after taking evidence and recording findings against the offence report containing summary of investigation and prima facie framing of charge into the acts of omission and commission by the Customs Broker, if any. The Principal Commissioner of Customs (General) had exceeded his jurisdiction in proceeding against the Customs Broker, despite charges being not established in the inquiry report - Appeal allowed.
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