2020 (3) TMI 1062 - AT - Customs

Revocation of CHA License - forfeiture of security deposit - denial of the procedural right of the licensee in enquiry proceedings - regulation 17(4) of the Customs Brokers Licensing Regulation, 2018 - HELD THAT - The manner in which the enquiry report has discarded the request of cross-examination received from the notice is not in conformity with regulation 17 of Customs Brokers Licensing Regulations, 2018. It was incorrect on his part to have come to the conclusion that the statements recorded therein, which is perceptible as the foundation of the show-cause notice, did not merit being subjected to the test of cross-examination. Considering the nature of defence offered in reply to the show-cause notice, the inference of substitution should have been permitted for ascertainment in the enquiry proceedings. This breach of responsibility by the disciplinary authority who was obliged to ensure compliance with the Regulations appears to have been further compounded by failure to dispose off the representation that this contravention of the principles of natural justice and the prescriptions in the statute renders the final decision to be unacceptable and inconsistent with law - matter remanded back to the original authority to order fresh enquiry proceedings under regulation 17 of Customs Brokers Licence Regulations, 2018. Appeal allowed by way of remand.

Summary

Issues:
- Urgent hearing request for appeal
- Denial of procedural right of licensee in enquiry proceedings
- Non-compliance with regulation 17 of Customs Brokers Licensing Regulation, 2018
- Discrepancies in enquiry report regarding cross-examination request
- Breach of responsibility by disciplinary authority
- Remand of the matter for fresh enquiry proceedings

Urgent Hearing Request for Appeal:
The appellant sought an 'out-of-turn' hearing for their appeal against the revocation of a license and imposition of penalties. The Tribunal found the matter to be urgent due to its impact on the livelihood of individuals employed by the appellant and allowed the early hearing application.

Denial of Procedural Right of Licensee in Enquiry Proceedings:
The appellant's counsel argued that the licensee was denied the right to cross-examine individuals crucial to the proceedings. Despite the mandate of regulation 17(4) of the Customs Brokers Licensing Regulation, 2018, the request for cross-examination was not allowed, leading to a failure to discharge the obligation under the regulation. The Tribunal noted the importance of cross-examination for the appellant's defense and highlighted the authority's failure to explain the non-compliance with valid reasons.

Non-Compliance with Regulation 17 of Customs Brokers Licensing Regulation, 2018:
The Tribunal observed that the manner in which the enquiry report dismissed the cross-examination request was not in line with regulation 17. It was deemed incorrect to conclude that the statements forming the basis of the show-cause notice did not warrant cross-examination, especially considering the nature of the defense presented by the appellant.

Discrepancies in Enquiry Report Regarding Cross-Examination Request:
The Tribunal found a breach of responsibility by the disciplinary authority for not ensuring compliance with the Regulations. The failure to address the representation of contravention of natural justice principles and statutory prescriptions rendered the final decision unacceptable and inconsistent with the law. Consequently, the impugned order and proceedings following the show-cause notice were set aside, and the matter was remanded for fresh enquiry proceedings.

Remand of the Matter for Fresh Enquiry Proceedings:
The Tribunal directed the appellant to cooperate in the fresh enquiry proceedings, emphasizing adherence to timelines. The decision aimed to rectify the procedural irregularities and ensure compliance with the Customs Brokers Licensing Regulation, 2018.

This comprehensive analysis of the judgment highlights the issues raised, arguments presented, and the Tribunal's decision to address the procedural shortcomings and remand the matter for further proceedings.