2019 (4) TMI 1051 - AT - Customs

Suspension of CHA License - contravention of Regulation 10(a), 10(b), 10(d), 10(e) and 10(n) of Customs Broker Licensing Regulation, 2018 - abetting the importer in evasion of duty by resorting to mis-declaration of goods - HELD THAT - The provisions of immediate suspension of license is required to be resorted to in deserving cases so as to prohibit the functioning of Custom House Agent at particular station, so that he does not tampers with the documents during the investigation and also to prohibit the CHA from indulging in activities prejudicial to Revenue during the investigation. Needless to say, the suspension is required to be done immediately after the detection of case against the CHA for misdeed or any manipulation by the CHA, which is not the case in the present proceedings. The impugned order is not sustainable and deserves to be set aside - appeal allowed - decided in favor of appellant.

Summary

Issues:
Appeal against suspension of Customs Broker license for alleged violations of Customs Broker Licensing Regulations.

Analysis:
The appellant, a Customs Broker, challenged the suspension of their license by the Commissioner of Customs for alleged violations of Customs Broker Licensing Regulations. The appellant was accused of mis-declaration and aiding in the evasion of Customs duty by clearing imported goods through conspiracy. The suspension was based on the appellant's involvement in obtaining forged documents and manipulating test reports. The appellant argued that they had followed due diligence and verification processes, denying any wrongdoing. The key ground for the suspension was a statement from the appellant's proprietor admitting to lapses by their representative. The Department supported the suspension, holding the appellant responsible for the actions of their representative. The Tribunal considered both sides' arguments and examined the case record.

The Tribunal found that the appellant had acted in good faith, following necessary procedures for customs clearance, and had no knowledge of the manipulation of test reports by their representative. The Tribunal noted that the detection of the case occurred in 2014, while the suspension and confirmation of the same happened in 2018, indicating a delay in taking action. Immediate suspension of a license is intended for cases where the agent may tamper with evidence or engage in prejudicial activities, which was not the situation here. The Tribunal cited a Bombay High Court decision emphasizing the emergency nature of suspension powers, which was not applicable in this case. Therefore, the Tribunal held that the impugned order was not sustainable and set it aside.

In conclusion, the Tribunal ruled in favor of the appellant, setting aside the suspension order of the Customs Broker license. The judgment highlighted the importance of immediate suspension in deserving cases and emphasized the need for timely action in such matters. The decision underscored the significance of following due process and ensuring that actions taken are proportionate to the circumstances at hand.