TMI Blog2021 (10) TMI 720X X X X Extracts X X X X X X X X Extracts X X X X ..... nsfer of licence and the vicarious responsibilities for acts of omission and commission by employees are intentionally segregated from the obligations that are the essence binding the licensor and licencee vis- -vis clients in the scheme of Customs Brokers Licensing Regulations, 2018. On the finding of the licence having been transferred, the appellant should not have been held accountable for compliance with obligations that devolve on a licencee in the handling of clients. Nor can the licensee on record be proceeded against for acts of employees as the alteration of employee-employer relationship erases the existence of expectation as far as employees are concerned. The substantial reliance placed by the licencing authority on the fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of investigations into imports of mobile phones against bill of entry no. 7815137/14.12.2016 by their client, M/s Creative Sales and Marketing, that was found to be in excess of quantity declared and lacking in mandatory BIS marks. The clearance had been handled by one Hitesh Ajmera, claiming to represent the appellant herein and the statement of Fredrick D Souza, Director of the appellant-company, affirmed him to be their G card holder working for them since 2010 till surrender of the card in February 2017. Hitesh Ajmera had, in his deposition, admitted to making upfront payment of ₹ 21,00,000/- besides assuring monthly payment of ₹ 30,000/- from out of the regular earnings from the operation of the licence. 2. The suspe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant, the parallel proceedings in show cause notice issued on 7th December 2017 under section 124 of Customs Act, 1962, arising from the same investigations, culminated in dropping of penalty under section 112 of Customs Act, 1962 at the adjudication stage and quashing of penalty under section 117 of Customs Act, 1962 at the appellate stage in order dated 11th July 2019 thus unsettling the foundations of the impugned order. It is also pointed out by Learned Counsel that the finding that 26. I find that the in the instant case of fraudulent import of undeclared goods concealed among declared Chinese Mobile Phones, by the importer M/s. Creative Sales Marketing (IEC No. 0516953451), Shri Hitesh Ajmera, representative of the CB has play ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to use his CB licence; that; he allowed Shri Hitesh Ajmera to use his CB licence; that Shri Hitesh. in the impugned order stands invalidated in consequence. In the appeal, it is further contended that the lapse of time between submission of enquiry report and the completion of proceedings also compromises its legality for having contravened the time-lines prescribed in the Regulations. It is also submitted that the several issues, such as mutual exclusivity of the charges, pleaded during the proceedings and no less valid now, raised for discrediting the finding on breach of regulation 10 and of regulation 13 of Customs Broker Licensing Regulations remained unanswered in the proceedings. Further, it is also contended that the alleged tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in the said investigations but of many other imports and exports for several years. The embargo, in Customs Brokers Licensing Regulations 2018, on transfer of licence and the vicarious responsibilities for acts of omission and commission by employees are intentionally segregated from the obligations that are the essence binding the licensor and licencee vis- -vis clients in the scheme of Customs Brokers Licensing Regulations, 2018. On the finding of the licence having been transferred, the appellant should not have been held accountable for compliance with obligations that devolve on a licencee in the handling of clients. Nor can the licensee on record be proceeded against for acts of employees as the alteration of employee-employer rela ..... X X X X Extracts X X X X X X X X Extracts X X X X
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