2018 (1) TMI 1139 - AT - Customs

Principles of Natural Justice - denial of request for cross-examination - suspension of CHA License - Section 138B of the Customs Act, 1962 - Held that - The provision of Section 138B and principles of natural justice demand that before passing an order based on certain statements, the authority has to follow the principles mentioned therein. By now it is a well settled principle that when specific request for cross examination is made the original authority has to give his finding on such request in terms of Section 138B of the Customs Act - In the present case, the procedure stipulated for due admission has not been followed. Matter remanded to the original authority for a fresh consideration by providing adequate opportunity - appeal allowed by way of remand.

Summary

Issues:
Violation of principles of natural justice and provisions of Section 138B of the Customs Act.

Analysis:
The appeal was filed against the order of the Commissioner of Customs (General), New Delhi, revoking the customs broker license of the appellant and forfeiting the security amount. The appellant, a customs broker, was involved in processing and clearance of goods through customs. The proceedings were initiated based on violations in the export of readymade garments under claim for drawback by a group of firms. The appellant was found to have violated the Customs Brokers Licensing Regulations, 2013. The appellant's license was earlier suspended, and after regular proceedings, the license was revoked. The appellant contested the order stating that they were not given the opportunity to cross-examine the employees whose statements were relied upon during the proceedings. The appellant argued that the relevancy of such statements should have been tested in terms of Section 138B of the Customs Act, 1962.

The Revenue authority reiterated the findings of the lower authority and stated that the necessary documents and statements were provided to the appellant in time. They argued that since the statements were voluntary and not retracted, there was no reason not to rely on them. However, the appellant raised a legal issue regarding the violation of principles of natural justice and Section 138B of the Customs Act. The Tribunal noted that the statements of employees formed the basis of the proceedings against the appellant, and Section 138B required examination of such statements for admission. It was observed that no cross-examination was allowed before admitting the statements, which was a violation of the principles of natural justice and the provisions of the Act. The Tribunal emphasized that the original authority must give a finding on a specific request for cross-examination as per Section 138B. As the proper procedure for admission was not followed, the impugned order was set aside, and the matter was remanded to the original authority for a fresh consideration, specifically allowing cross-examination of the witnesses whose statements were relied upon.

In conclusion, the Tribunal set aside the impugned order and remanded the matter to the adjudicating authority for a fresh decision, emphasizing the importance of following the principles of natural justice and the provisions of Section 138B of the Customs Act for a fair adjudication process.