Cappithan Agencies Vs Commissioner of Customs (Kerala High Court)
Kerala High Court held that Once that trust is broken, and the Customs Broker ceases to inspire the confidence of the Customs Department in relation to his functioning, he loses the right to seek a reinstatement of his license under the Regulations. Accordingly, revocation of license upheld in connection with smuggling of huge quantities of gold.
Facts- The appellant was a Customs Broker and holder of Customs Broker License. With a view to operate and supervise the activities of the appellant, the appellant had designated G-Card holders who are authorised persons to ensure compliance with the statutory requirements and to ensure smooth running of the activities in the Cochin Port.
Read SC Judgment: Gold Smuggling: SC Upholds Revocation as Broker Failed to Verify Clients & Report Irregularities
In relation to an import of a consignment that was declared as Diplomatic Cargo, an inspection was conducted by the Officers of the Preventive Department of the Cochin Commissionerate on 05.07.2021, and a quantity of 30.245 kgs. of gold was seized from the consignment declared as Diplomatic Cargo, and in respect of which, Bill of Entry had been filed by the appellant. Accordingly, the appellant was directed to show cause as to why its customs broker license should not be revoked under Rule 14 of the CBLR, 2018 on account of violation under Regulation 10(a), (d), (e), (m) and (n) respectively and penalty should not be imposed on the appellant under Regulation 18 of the CBLR, 2018. The Commissioner, however, rejected the explanation offered by the appellant and confirmed the proposals in the show cause notice.
