Cappithan Agencies Vs Commissioner of Customs (CESTAT Bangalore)
In Cappithan Agencies Vs Commissioner of Customs, the appellant contested a penalty of ₹10,000 imposed by the Adjudicating Authority under the Customs Broker Licensing Regulations (CBLR), 2013. The penalty stemmed from the involvement of an importer, M/s Antoni & Decourel Organic Chemical Company, which imported raw materials for drug manufacturing without the necessary clearance from the Assistant Drug Controller (ADC). While the Adjudicating Authority acknowledged that the appellant was not directly involved in the alleged infractions, it concluded that the appellant had failed to adequately supervise its employees, resulting in a breach of Regulation 17(9) of the CBLR.
During the hearing, the appellant’s counsel argued that the right to cross-examine witnesses was denied, violating Regulation 20(4) of the CBLR. This regulation grants customs brokers the opportunity to challenge statements made by individuals whose testimonies form the basis of the inquiry. The appellant contended that without the chance to cross-examine, the findings against them were unsubstantiated. The counsel also highlighted that the inquiry officer had not found direct involvement of the appellant in the violations, emphasizing that penalties should not be levied based solely on employee misconduct unless the customs broker itself was shown to have engaged in wrongdoing.
