Palak Logistics Private Limited Vs Principal Commissioner of Customs (General) (CESTAT Mumbai)
Material Facts
The appeals challenged two Orders-in-Original dated 02.05.2024 and 24.05.2024 passed by the Principal Commissioner of Customs (General), Mumbai under the Customs Brokers Licensing Regulations, 2018 (CBLR).
The appellant, a licensed Customs Broker, was proceeded against following investigations into alleged overvaluation of export consignments handled for certain exporters. The investigation originated from information received from the Consulate General of India, Dubai indicating that export goods had been cleared in Dubai at values substantially lower than those declared before Indian Customs. The Department alleged that exporters had overvalued export goods to obtain excess drawback and initiated proceedings alleging violation of Regulations 10(d), 10(e), 10(f) and 10(m) of the CBLR, 2018.
In both proceedings, the Inquiry Authority concluded that all charges against the appellant were “Not proved.” However, the Principal Commissioner issued disagreement memoranda and subsequently passed orders revoking the Customs Broker licence, forfeiting the entire security deposit and imposing penalties.
Procedural History
Two separate show cause notices were issued under Regulation 17 of CBLR, 2018.
Following inquiry reports holding all charges unproved, the Principal Commissioner disagreed with the findings and passed:
- Order dated 02.05.2024 revoking the Customs Broker licence, forfeiting the security deposit and imposing penalty.
- Order dated 24.05.2024 again directing revocation of the Customs Broker licence, forfeiture of the security deposit and penalty, to operate upon revival of the licence if the earlier order was set aside in appeal.
The appellant challenged both orders before the Tribunal.
