Mere suspicion in import/export cannot be ground to suspend license of Customs Broker

Global Forwarders Inc Vs Commissioner of Customs (Prev.) (CESTAT Delhi)

CESTAT Delhi held that simply because a suspicion has arisen in a particular case it is not sufficient ground to suspend the licence of the customs broker who handled such imports/exports.

Facts- The appellant is licenced as Customs Broker by the Commissioner of Customs (Preventive), Jodhpur and was entitled to operate throughout the country. It filed a shipping bill dated 26.06.2021 on behalf of M/s ZED A International, Inc. at Air Cargo (Export), New Delhi. The consignment was examined by the officers of Customs, statement of the appellant was recorded, market survey was conducted and on 14.09.2022, and a show cause notice was issued by Joint Commissioner, Customs, Air Cargo (Export), New Delhi to the exporter and also to the appellant proposing action under various provisions of the Customs Act, 1962. A copy of this SCN was also sent to the Commissioner of Customs (Preventive), Jodhpur which was received by him on 03.10.2022.

After examining the SCN, the Commissioner of Customs, Jodhpur issued an order on 14.10.2022 suspending the customs broker licence of the appellant recording, inter-alia, “therefore, considering the gravity of the case, it is felt that immediate action is warranted to prevent misuse of Customs Broker Licence No. 01/CHALR/2004 of M/s Global Forwarders Inc., which warrants urgent action”. On 07.11.2022, after considering the defence put-forth by the appellant against the suspension, the impugned order was passed confirming the suspension. Aggrieved, the appellant filed this appeal.

Conclusion- In our considered view, simply because a suspicion has arisen in a particular case it is not sufficient ground to suspend the licence of the customs broker who handled such imports/exports. Only after necessary enquiry, and investigation if a prima facie case is found against the customs broker can its licence be suspended.

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