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2023 (2) TMI 75 - DELHI HIGH COURTRevocation of Customs Broker License - forfeiture of security deposit - penalty - guilty of misconduct - misdeclaration of goods by the exporter (M/s Balaji International) and attempted to facilitate export of goods otherwise restricted at the material time - classification of export consignment of Glucose Test Strips - N/N. 59/2015 -20 dated 04.04.2020 - HELD THAT:- It is material to state that the consignment of ‘Glucose Test Strips’ was held up at the material time on the ground that the items were restricted. In this regard the exporter and the Department had exchanged correspondence. It is not disputed that the consignment was finally cleared. Admittedly, the goods in question were correctly described as ‘Glucose Test Strips’ in the Shipping Bills and these goods were exported after the initial hold up. It is, thus, not difficult to accept that at the material time, there may have been some confusion as to the classification of the goods as has been contended by the appellant. In the present case, the exporter had classified the goods in question under CTH 90279090. It is the exporter’s stand that the said classification was a correct one. The appellant had candidly stated that there was some confusion at the material time. In his statement, he had also candidly admitted that the shipping bill was filed during the period of lock down and that there was a mistake. He had also stated that he was not aware that the goods in question, namely, glucose tested strips contained reagents. He had also stated that they always took due care before filing shipping bill, but due to shortage of staff during the lock down period, a mistake had occurred - it is apparent that the appellant had been remiss, however, the appellant’s candid admission must also be read along with his statement that he was not aware that the goods in question contained reagents. It is apparent in the given facts that it cannot be held that the appellant had misconducted itself, thus, the only ground on which the appellant’s licence is revoked was failure to comply with the regulations, which would follow in case there was a failure to comply with the obligations under regulation 10 of CBLR, 2018. However, it is also material to note that Regulation 14 confers a discretion on the Principal Commissioner whether to revoke the license and forfeit the security deposit - In this case the exporter was fully aware of the issue regarding classification and, the exporter had also corresponded with the department and had asserted that the goods in question were not restricted. Undisputedly, the goods in question were correctly described in the Shipping Bill as “glucose testing strips”. Further, the appellant had explained that there was confusion on his part and had candidly admitted his mistake. In the given facts, any error on the part of the appellant to inform the exporter regarding the classification of the goods cannot be considered as sufficiently grave so as to forfeit the appellant’s license. The learned Tribunal had not examined the material facts of the present case to ascertain whether an action under Regulation 14 was justified. The impugned order as well as the order dated 11.06.2021 passed by the Commissioner of Customs to the extent that it revokes the appellant’s license and forfeits the security deposit is set aside - Appeal allowed in part.
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