2023 (7) TMI 963 - AT - Customs

Suspension of Customs Broker License - single alleged misdemeanour - violation of regulation 16 of Customs Broker Licencing Regulations, 2018 - HELD THAT - The suspension has been ordered for a single alleged misdemeanour of August/September 2021 and that, too, in clearance of an article that is permissible for import subject to necessary licences. The goods are not a normal item of import requiring close familiarity on the part of the importer. The claim of the appellant to unblemished record of half a century as a professional customs broker has not been disputed. The apprehension of similar modus operandi that exercised the mind of the licencing authority is, thus, needless. Several months have elapsed since the alleged incident before suspension was resorted to by the licencing authority. Regulation 16 of Customs Broker Licencing Regulations, 2018 may be invoked only when immediate action is warranted and such circumstances did not obviously exist. The suspension is set aside - appeal allowed.

Summary

Issues:
The appeal against the suspension of customs broker license under regulation 16 of Customs Broker Licensing Regulations, 2018.

Summary:

Issue 1: Suspension of Customs Broker License
The appellant, M/s MD Ruparel & Sons, appealed against the suspension of their customs broker license no. 11/224 on 23rd June 2022 by the Principal Commissioner of Customs (General). The suspension was continued post a hearing as prescribed in regulation 16 of Customs Broker Licensing Regulations, 2018. The appellant sought revocation of the suspension, arguing that suspension is a temporary measure and not a penalty. The focus was on the circumstances warranting the deprivation of livelihood rather than the facts leading to the impugned order. The Tribunal emphasized the limited issue of the circumstances justifying the suspension under regulation 16.

Issue 2: Alleged Breach of Obligations
The appellant filed bills of entry for import of 'air gun pellets dummy' by M/s Firoza Movie International Enterprises, which were found to be 'blank cartridges' restricted for import under the Foreign Trade Policy. The appellant argued that they were not properly advised by the importer and that their long-standing impeccable record since 1972 contradicts any doubts on their diligence. The licencing authority's apprehension of a similar modus operandi in the future was deemed unnecessary given the appellant's track record.

Issue 3: Legal Precedent
The appellant relied on the decision in P Cawasji & Co v. Commissioner of Customs (General), Mumbai, which highlighted that suspension of a customs broker license is not mandatory in every case, and immediate action is necessary only in appropriate cases. The Tribunal considered the grounds for suspension as elaborated in the impugned order and concluded that the suspension for a single alleged misdemeanour was unwarranted, especially considering the nature of the imported goods and the appellant's unblemished professional history.

Decision:
The Tribunal set aside the suspension of the customs broker license and allowed the appeal, emphasizing that the circumstances did not warrant immediate action under regulation 16 of Customs Broker Licensing Regulations, 2018. The order was pronounced in the open court on 28/06/2023.