2023 (8) TMI 1329 - AT - Customs

Levy of penalty - mis-conduct and moral turpitude - Restoration of Customs Broker License - Customs Broker did not appear before the Deputy Director DRI, Ahmedabad against the two summons issued to him - HELD THAT - It is noted that the appellant did not actively cooperate in the investigations, initiated by the DRI in its initial stage. They however and being an outstation broker, in all propriety have sought 15 day s prior notice, which on both the occasions of DRIs summons was elusive. Also the appellant has been penalized by the Additional Chief Metropolitan Magistrate in the criminal complaint filed by DRI at Ahmedabad, for non attendance to summons and making over the required documents - thus, having suffered the imposition of penalty by the ACMM, Ahmedabad there is least of justification in imposition of penalty involving moral turpitude, under regulation 18(f) for the said act. Also this may not actually be a case involving moral turpitude, be as it is certainly not linked to an immoral act on the part of the appellant. It is noted that it was imperative for the appellant to have with greater sincerity and due care taken measures to abide by the summons issued. This is all the more, relevant for them as they are a licensed Customs Broker and thus in a way being an extended arm of the department and an important interphase with the trading (importing and exporting) community, they had to be more vigilant and demonstrative in their actions and conduct. There is no justification in imposition of maximum penalty prescribed under the regulations - the ends of justice would be met by imposing a token penalty of Rs. 10,000/- on the appellant, under regulation 20 of the CHALR, 2004 - Appeal disposed off.

Summary

Issues involved:
The imposition of a penalty on a Customs Broker under regulation 18 of Customs Broker Licensing Regulation 2013 for non-appearance before the Deputy Director DRI and conviction under Section 174 and Section 175 of the Indian Penal Code 1860.

Details of the Judgment:

Issue 1: Imposition of penalty under regulation 18(c) for non-appearance before the Deputy Director DRI:
The Customs Broker did not appear before the Deputy Director DRI against the summons issued, but sent a written representation. The Commissioner considered this as a complete disregard of law and misconduct. The appellant contended that they cooperated with the DRI, appeared on later dates, and submitted all requested documents. The Tribunal noted that the penalty imposed was excessive and unjustified, considering the restoration of the Customs Broker license and the circumstances. They imposed a token penalty of Rs. 10,000 under regulation 20 of the CHALR, 2004.

Issue 2: Imposition of penalty under regulation 18(f) for conviction under Section 174 and Section 175 of the Indian Penal Code 1860:
The adjudicating authority relied on the appellant's conviction by the Additional Chief Metropolitan Magistrate for non-appearance and dishonoring of summons. The Tribunal observed that while the appellant was penalized by the ACMM, Ahmedabad, there was no justification for imposing a penalty involving moral turpitude under regulation 18(f). They found that the appellant's actions did not amount to moral turpitude and that the penalty imposed was excessive. The Tribunal concluded that a token penalty of Rs. 10,000 would suffice under regulation 20 of the CHALR, 2004.

Conclusion:
The appeal was disposed of with the imposition of a token penalty of Rs. 10,000 on the appellant, considering the restoration of the Customs Broker license and the circumstances of the case.