2021 (6) TMI 961 - AT - Customs

Continuation of Suspension of Customs Broker Licence - overvaluing the export goods - Wall Paper - fraudulent claiming of input tax credit refund - inquiry pending against broker - HELD THAT - On the basis of offences reported from the Commissioner of Customs (P), Jamnagar, initially Customs Broker License of the appellant was suspended on 31.7.2020, thereafter the post decisional hearing was extended to the appellant on 13.8.2020. On prima facie scrutiny of the evidences about allegation of improper discharge of the duty by the appellant and thereby violation of regulations 10(a), 10(d), 10(e) and 10(n) of CBLR, 2018, the Commissioner has observed that further continuation of the appellant Customs Broker in discharging services under the CBLR, 2018 will cause impediment to the interest of the Revenue pending full-fledged inquiry against him. Hence, he directed suspension of the license issued to the appellant pending further proceedings in the matter. The appellant could not bring any evidence to negate the prima facie findings of the Commissioner, therefore, there are no reason to interfere with the order of suspension dated 31.7.2020 and confirmation by the Commissioner in the present impugned order. Also, there is no arbitrary exercise of power in placing the license under suspension by the adjudicating authority not the timeline prescribed under the regulations has been violated The impugned order need not be interfered - appeal disposed off.

Summary

Issues:
Appeal against suspension of license under CBLR, 2018 pending proceedings under regulation 17 - Alleged mis-declaration of exported goods leading to fraudulent IGST refund - Excessive power and jurisdiction of adjudicating authority - Violation of CBLR, 2018 regulations - Prima facie findings of involvement in fraudulent activities - Compliance with timelines for suspension and post-decisional hearing - Initiation of proceedings under regulation 17.

Analysis:
The appeal was filed against the suspension of a license under CBLR, 2018 following allegations of mis-declaration of exported goods by certain exporters, resulting in fraudulent IGST refund claims. The appellant, a Customs Broker, argued that the suspension was beyond the adjudicating authority's power, emphasizing their lack of involvement in the mis-declaration as they relied on information provided by exporters. They contended that they acted in good faith and had conducted necessary verifications, citing a relevant tribunal decision for support.

On the contrary, the Revenue's representative supported the Commissioner's findings, asserting the appellant's prima facie involvement in the fraudulent activities and violation of CBLR, 2018 regulations. The timeline for suspension and post-decisional hearing was deemed compliant, with a show-cause notice already issued to initiate further action under regulation 17 of CBLR, 2018.

After hearing both sides and reviewing the evidence, the Tribunal noted the initial suspension of the license based on prima facie evidence of regulatory violations and potential revenue loss. The Commissioner's decision to continue the suspension was upheld, as the appellant failed to refute the findings adequately. The Tribunal found no arbitrary exercise of power and confirmed that the timeline for suspension was followed. Notably, proceedings under regulation 17 had been initiated, and the appellant was directed to cooperate with the ongoing process.

In conclusion, the Tribunal upheld the suspension order, emphasizing the need for the appellant's cooperation in the regulatory proceedings. The appeal was disposed of accordingly, with a directive for the appellant to engage in the ongoing departmental proceedings under CBLR, 2018.