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2016 (12) TMI 319 - AT - CustomsRevocation of CHA licence - benefit under the Duty Exemption Pass Book (DEPB) scheme - misdeclaration of exports - Held that: - A licencing system, with stringent requirement of authorization and issue of passes, is of little avail if it fails in enforceability. Not only was a shipping bill, signed by an unauthorized person, allowed to be filed but it is stated authoritatively that the unauthorized person was present at the examination of the cargo. It is surprising that such person, lacking credentials, was allowed access to customs areas and indeed allowed to participate in proceedings. If such be the ease of insinuation, the contention of the appellant that they were unaware of the illicit use of their licence is acceptable as within the realm of the possible. It would appear that there is no let or hindrance to any person filing a bill of entry or shipping bill without the knowledge of the broker whose authority is usurped. In these circumstances, we find no merit in the acceptance of the report of the inquiry officer by the licencing authority as sufficient grounds for revocation of licence and forfeiture of security deposit. Independent inquiry was not carried out before proceeding with penalty under regulation 20 of Customs Brokers Licencing Regulations, 2013. Action was based on evidence that was seemingly sufficient for initially imposing penalty under section 114 of Customs Act, 1962 but found to be inadequate in appellate proceedings. The evidence that was the foundation of the penalty having been discredited in its hierarchical progression, its tertiary use in proceedings under the Regulations, itself a vitiating factor, lacks sanctity. Appeal allowed - decided in favor of appellant.
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