2015 (11) TMI 888 - AT - Customs

Revocation of CHA license - Quantum of security - Held that - An assessee is entitled to his own view point and is within his rights to challenge the view of the Revenue. This is what exactly the appellant did. He challenged the earlier order of the Commissioner being Order No.30/2013 before the Tribunal, in exercise of his right of appeal granted to every citizen. In fact the earlier order passed by the Commissioner itself, in its preamble, observed that an appeal can be filed before the Tribunal. When the appellant lost before the Tribunal, he furnished the requisite amount of security in terms of the new Regulations. The question is as to whether such conduct of the appellant in not accepting the Revenue s direction and challenging the same before the higher appellate forum can be considered to be a misconduct on his part as Custom Broker License holder so as to revoke his license. The answer to such a question, by any reasonable prudent man would be emphatic NO . Appellant s license which has already been renewed by Commissioner himself till 2021 cannot be revoked on this sole ground that instead of accepting the directions of the Commissioner, the appellant has chosen to file an appeal before the Tribunal. As such, we find no merits in the impugned order of the Commissioner revoking the appellant s license and imposing penalty on him. The order is set aside - Decided in favour of appellant.

Summary

Issues:
1. Dispute regarding security amount for renewal of CHA license under old and new regulations.
2. Compliance with directions for additional security under new regulations.
3. Revocation of customs broker license, forfeiture of security, and penalty imposition.

Issue 1:
The appellant's CHA license was suspended due to alleged wrong signing of customs documents. The dispute arose when the old CHA Licensing Regulations 2004, requiring a security of Rs. 75,000 for renewal, were replaced by the new Customs Brokers Licensing Regulations 2013 (CBLR 2013) mandating a security of Rs. 5 lakhs. The appellant argued for the old security amount, leading to the suspension of the license. The Central Board of Excise and Customs clarified the requirement of Rs. 5 lakh security under CBLR 2013. The appellant challenged the directions, resulting in further suspension. The Tribunal upheld the requirement of Rs. 5 lakhs security, and the appellant complied by submitting the additional security.

Issue 2:
The appellant's non-compliance with the Commissioner's directions to provide the additional security of Rs. 5 lakhs under CBLR 2013 led to the revocation of the customs broker license, forfeiture of security, and imposition of a penalty. Despite the appellant challenging the Commissioner's order before the Tribunal, the compliance was made after the Tribunal's directive. The Commissioner revoked the license citing misconduct based on the appellant's refusal to follow the directions. However, the Tribunal found the appellant's actions, including challenging the directions, as part of his right to appeal and not constituting misconduct warranting license revocation.

Analysis:
The judgment addressed the conflict between old and new regulations regarding the security amount for license renewal. It emphasized the appellant's right to challenge the Revenue's directives and the Tribunal's role in resolving disputes. The Tribunal ruled in favor of the appellant, highlighting that challenging the Revenue's decision did not amount to misconduct justifying license revocation. The judgment underscored the importance of due process and the appellant's compliance with the Tribunal's order, leading to the restoration of the license. The decision emphasized the need for fair treatment and adherence to legal procedures in regulatory matters involving customs broker licensing.