2023 (3) TMI 957 - AT - Customs

Suspension of the customs broker licence - appellant did not verify the antecedents of the exporter by visit to his premises and also that there was difference in declared value of the export goods and value arrived at by Market survey - failure to ascertain the correct value of the export consignments - failure of the appellant to verify the antecedents. The appellant s first contention is that there was undue delay in issuing the impugned order considering that the alleged irregularity took place on 26.06.2021 and the suspension order was issued only on 14.10.2022 - HELD THAT - Simply because a suspicion has arisen in a particular case it is not a sufficient ground to suspend the licence of the customs broker who handled such imports/exports. Only after necessary enquiry, and investigation if a prima facie case is found against the customs broker can its licence be suspended. In this case, the Commissioner, Air Cargo, New Delhi completed the investigation and issued a SCN on 14.09.2022 and it was received by the Commissioner, Jodhpur giving him sufficient grounds to examine if suspension of the licence was warranted. The licence was suspended soon after by order dated 14.10.2022. The post decisional hearing was given and the suspension was confirmed by the impugned order dated 07.11.2022 - there are no delay at all on the part of the Commissioner, Jodhpur or any error in issuing the suspension order or in issuing the order confirming the suspension. It is not found that the appellant confined his submission to the immediate need to suspend the licence. It is in this context that Commissioner examined the above submissions of the appellant and gave his findings. When the appellant itself has made submissions on merits as defence, the Commissioner was bound to examine those and give his findings on them. Therefore, there are no force in the submission of the learned counsel for the appellant that the Commissioner has pre-decided the issues - the Commissioner came to the conclusion that immediate action was necessary while suspending the licence on 14.10.2022 and promptly took subsequent steps for confirmation of the suspension. It is also found that after the impugned order, the Commissioner issued SCN dated 29.11.2022 proposing revocation of the licence. The appellant had, within a month, submitted its reply to the SCN dated 29.11.2022 on 26.12.2022. The enquiry officer submitted his report on 02.01.2023. All that is pending is the final decision by the Commissioner regarding revocation of licence. There is no ground to revoke the suspension of the Customs Broker Licence of the appellant at this stage - Appeal dismissed.

Summary

Issues involved:
The issues involved in the judgment are the suspension of the customs broker license of the appellant under the Customs Broker Licensing Regulation, 2018 and the subsequent appeal against the order confirming the suspension.

Suspension of Customs Broker License:
The appellant, a licensed Customs Broker, had their license suspended by the Commissioner of Customs (Preventive), Jodhpur, following a show cause notice issued on 14.09.2022. The suspension order was issued on 14.10.2022 and confirmed on 07.11.2022. The appellant contended that there was undue delay in issuing the suspension order, as the alleged irregularity took place on 26.06.2021, and the suspension was not immediate. However, the Tribunal found that the suspension was based on necessary enquiry and investigation, with a show cause notice issued before the suspension, thus upholding the suspension order.

Merits of the Case:
The appellant was alleged to have contravened certain provisions of the Customs Broker Licensing Regulations, including failure to verify antecedents of the exporter and discrepancies in declared values of export goods. The appellant argued that the Commissioner's findings on these violations were premature and should have been decided at the final stage of revocation of the license. However, the Tribunal noted that the appellant had presented defenses on the merits of the case, which the Commissioner was obligated to consider. The Tribunal found that the Commissioner's actions were in line with the procedural requirements and did not pre-decide the issues, thus dismissing the appellant's arguments on this point.

Revocation of License:
After the confirmation of the suspension, a show cause notice proposing revocation of the license was issued to the appellant. The appellant submitted a reply, and an enquiry officer submitted a report. The Tribunal directed the Commissioner to decide on the revocation as soon as possible, emphasizing the importance of a quick decision to enable the appellant to seek further remedy. The Tribunal clarified that it did not examine the merits of the case and upheld the suspension pending the final decision on revocation.

Conclusion:
The Tribunal dismissed the appeal filed by the appellant and upheld the impugned order confirming the suspension of the Customs Broker License. The order was pronounced in open court on 21/03/2023.