2019 (1) TMI 922 - HC - Customs

Cancellation of candidature of customs broker - surrender of H Card - violation of Fundamental Right or not - N/N. 40/2012-Customs dated 02.05.2012 - Held that - It is clear that the person employed with the Customs Broker is required to be free of any adverse reports. The past antecedents for the suitability of issue of H Card is a mandatory requirement of work on employment with Customs Broker. Needless to say, G Card carries more responsibilities like signing the documents on behalf of the importer and Customs Broker and requires a stricter scrutiny. In the instant case, the petitioner had failed to qualify the requirements of the CBLR, 2013 to claim right of appearance for the examination for G Card - Petition dismissed.

Issues:
1. Violation of principles of natural justice in passing impugned orders.
2. Allegation of cancellation of candidature being a violation of Fundamental Right.
3. Discrepancies in the Bill of Entry and subsequent manual correction.
4. Admittance of involvement in manual amendment without authority.
5. Compliance with Customs Brokers Licensing Regulations (CBLR), 2013 for employment conditions.
6. Requirement of good conduct for H Card holders and implications for G Card examination eligibility.

Analysis:

Issue 1: Violation of principles of natural justice
The petitioner contended that the impugned orders were passed without following the principles of natural justice. However, the court found that the petitioner had admitted to involvement in manual amendment without authority, which was in violation of relevant regulations. The court also noted that the petitioner's plea of Principles of Natural Justice was not tenable based on the detailed explanation provided during the enquiry.

Issue 2: Allegation of cancellation of candidature violating Fundamental Right
The petitioner argued that the cancellation of candidature was a violation of Fundamental Right. However, the court found that the petitioner's involvement in unauthorized manual amendments of the Bill of Entry raised serious concerns regarding compliance with regulations and the responsibilities of a Customs Broker.

Issue 3: Discrepancies in the Bill of Entry and subsequent manual correction
The petitioner claimed that discrepancies in the Bill of Entry were unintentional typographical errors. However, investigations revealed that the manual correction was unauthorized and the signature on the document was found to be forged after testing by the Central Forensic Science Laboratory.

Issue 4: Admittance of involvement in manual amendment without authority
The petitioner admitted to involvement in manual amendment without authority, which was a violation of relevant Notifications. The court emphasized the sensitivity of the Customs Broker's job and the need for integrity in handling duties, especially in the context of presenting forged documents for refund claims.

Issue 5: Compliance with CBLR, 2013 for employment conditions
The court highlighted the provisions of CBLR, 2013, which mandate verification and approval of antecedents for H Card holders. The regulations require Customs Brokers to employ individuals with integrity, and failure to comply can result in disqualification for examinations like the G Card.

Issue 6: Requirement of good conduct for H Card holders and implications for G Card examination eligibility
The court emphasized that H Card holders must have good conduct and meet the requirements specified in the regulations to qualify for examinations like the G Card. The petitioner's involvement in fraudulent activities and unauthorized manual amendments led to the dismissal of the writ petitions.

In conclusion, the court dismissed both Writ Petitions, emphasizing the need for compliance with regulations, integrity in duties, and adherence to the employment conditions outlined in the Customs Brokers Licensing Regulations, 2013.

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