2022 (8) TMI 842 - HC - Customs

Violation of principles of natural justice - whether Commissioner of Customs merely concurred with the Inquiry Report without any consideration? - all the documents and evidence on record, were considered or not, to arrive at conclusion - HELD THAT - The findings recorded by the Tribunal have their basis in the record which it perused for holding that there was a violation of the principles of natural justice rendering the order of revocation of the license of the respondent unsustainable in law. There is nothing in the said order which can be said to be perverse - Different view from the one recorded by the Tribunal, cannot be taken. The appeal is found to be without merit is accordingly dismissed.

Summary

Issues involved:
1. Appeal under section 35G of the Central Excise Act, 1944 against CESTAT's order.
2. Questions of law regarding CESTAT's decision on concurrence, natural justice, and evidence consideration.
3. Suspension of Custom Broker License due to failure in duty.
4. Show cause notice for license revocation, security deposit forfeiture, and penalty imposition.
5. Revocation of Custom Broker License by Commissioner of Customs.
6. Appeal against revocation order and remand for fresh inquiry by CESTAT.
7. CESTAT's findings on violation of natural justice principles in inquiry process.
8. High Court's analysis of CESTAT's findings and dismissal of the appeal.

Analysis:
1. The appeal was filed under section 35G of the Central Excise Act, 1944 against the order of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai, West Zonal Bench. The questions of law raised included the concurrence of the Commissioner of Customs with the Inquiry Report, violation of natural justice principles, and the adequacy of evidence consideration by CESTAT.
2. The respondent, a Custom Broker, had their license suspended due to alleged failure in verifying an importer's antecedents and bona fides, resulting in the seizure of smuggled goods. A show cause notice was issued for license revocation, security deposit forfeiture, and penalty imposition under Customs Broker Regulation, 2013.
3. The Commissioner of Customs revoked the Custom Broker License, leading the respondent to appeal before CESTAT. CESTAT allowed the appeal, citing a violation of natural justice principles in the inquiry process, and remanded the matter for a fresh inquiry by the Commissioner of Customs.
4. CESTAT's detailed findings highlighted instances where the inquiry authority did not ensure the respondent's participation, failed to provide necessary documents, and did not allow cross-examination of the investigating officer, leading to a breach of natural justice principles.
5. The High Court upheld CESTAT's findings, emphasizing the violation of natural justice principles in the inquiry process, rendering the revocation of the license unsustainable in law. The Court found no perversity in CESTAT's order and dismissed the appeal, affirming CESTAT's decision.

This comprehensive analysis covers the legal issues, procedural history, findings, and the final judgment of the High Court in the case.