Case Law Details
Sriaanshu Logistics Through Proprietor Vs Commissioner of Customs (Delhi High Court)
Introduction: In a recent judgment, the Delhi High Court upheld the suspension of a customs broker license (CBL) in a case involving fraudulent permitting of third-party use. The appellant contested the order issued by the Customs Excise Service Tax Appellate Tribunal, but the court ruled in favor of the Commissioner of Customs. This article provides a detailed analysis of the case and the court’s decision.
Detailed Analysis: The case revolves around the appellant, a customs broker, who allegedly allowed third parties to use their CBL in exchange for a monthly remuneration of Rs. 50,000. The appellant admitted to providing login credentials and digital signatures, facilitating fraudulent imports. The Commissioner of Customs invoked Regulation 10 and 11 of the Custom Broker Licensing Regulations, leading to the revocation of the license.
The appellant appealed to the tribunal, arguing against the severity of the punishment. However, the tribunal upheld the revocation, emphasizing the breach of trust and violation of regulations. The High Court examined the submissions and precedent cases, including Ashiana Cargo Services vs. Commissioner of Customs, highlighting the importance of strict compliance with regulations to maintain trust in customs brokers.
The court dismissed the appeal, affirming the proportionality of the punishment. Citing Commissioner of Customs vs. K.N. Ganatra & Co., the court stressed the seriousness of subletting licenses, considering it a violation of trust and misconduct. With the appellant’s admission of facilitating third-party use for monetary gain, the court found the revocation justified.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
