Revocation of customs broker license unjustified as suspension for two years enough

H2O Logistics Vs Principal Commissioner of Customs (CESTAT Mumbai)

CESTAT Mumbai held that revocation of Customs Broker license unjustified as punishment suffered by being out of Customs broker business for about two years is enough to mitigate case of violations or contraventions of CBLR, 2018.

Facts- The appellant is a Customs Broker (CB). In an investigation initiated by Special Intelligence and Investigation Branch (SIIB) of Air Cargo Complex (ACC), Mumbai, a case was registered against one importer M/s M.S. Trading Company, Delhi, who had imported ‘hearing aids’ by over valuation of imported goods for the purpose of money laundering. In connection with such imports, SIIB investigation noted that the appellants CB had filed Bill of Entry and thus were involved with certain violations of CBLR, 2018.

On the basis of such offence report, jurisdictional Principal Commissioner of Customs (General), Mumbai-I had concluded that there is a prima facie case against the appellant for having contravened Regulations 10(d), 10(e) and 10(n) of CBLR, 2018. Accordingly, the said Principal Commissioner of Customs, had suspended CB license of the appellants under Regulation 16(1) of CBLR, 2018, with immediate effect. Further, after giving a post-decisional opportunity of personal hearing to the appellants, the said Pr. Commissioner of Customs continued the suspension order pending inquiry proceedings to ascertain full extent of the role of CB.

A show cause notice was issued to the appellants for initiating inquiry proceedings under Regulations 17 of CBLR, 2018, against violations of CBLR, 2018 due to failure of the appellants to comply with Regulations 10(d), 10(e) and 10(n) of CBLR, 2018 and to appear before the Inquiry Authority. Further, the Principal Commissioner of Customs (General), Mumbai-I, being the licensing authority under Regulations 14 ibid had passed the impugned order for revoking CB License of the appellants and, at the same time, forfeited the entire amount of security deposit and imposition of penalty of Rs.50,000/-, while ordering for surrender of original license as well as all the “F”, “G” & “H” cards issued therein to the appellants. Feeling aggrieved with the impugned order, the appellants have preferred this appeal before the Tribunal.

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