Principal Commissioner of Customs (General) Vs Suswashis Clearing and Forwarding Agency (Bombay High Court)
The Bombay High Court dismissed the Revenue’s appeal challenging the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) order dated 16 February 2024, which had set aside the order revoking the Customs Broker’s licence, forfeiting the security deposit for the second time, and imposing a penalty.
The Revenue raised three questions of law concerning the validity of the Show Cause Notice issued after an earlier licence revocation, the Customs Broker’s non-appearance despite multiple opportunities for personal hearing, and whether revocation of the licence was a disproportionate punishment.
The High Court held that the third question did not arise from the CESTAT’s order because the Tribunal had not recorded any finding that the punishment was harsh or disproportionate.
Regarding the remaining questions, the Court found that they were not relevant because there was an undisputed violation of Regulation 17(4) of the Customs Brokers Licensing Regulations, 2018 (CBLR, 2018). Regulation 17(4) entitles a Customs Broker to cross-examine persons whose statements form the basis of the proceedings, unless the authority records written reasons for refusing such cross-examination.
The Court noted that after receiving the Show Cause Notice dated 27 April 2022, the Customs Broker had specifically requested permission to cross-examine Shri Rajesh Dilip Gihar, proprietor of M/s. G. R. Creation, and Shri Mohammad Yusuf, Manager of M/s. Manjunatha Cargo Pvt. Ltd. The statement of Shri Rajesh Dilip Gihar had been expressly relied upon in the Show Cause Notice to frame charges. Since no opportunity for cross-examination of Shri Rajesh Dilip Gihar was granted, the CESTAT correctly concluded that Regulation 17(4) had been violated, rendering the entire proceedings invalid.
