2024 (1) TMI 1090 - AT - Customs

Revocation of suspension of the Licence of the Customs Broker-respondent - inappropraie classification of imported goods - HELD THAT - In the impugned order, the Commissioner has observed that it was not the case of the Department that the Customs Broker had given a different description than what was given in the import invoice. The above observation is of utmost relevance since the import invoice is issued by the vendor / foreign supplier to the importer. Further, the Commissioner has also accepted the pleading of the respondent-Customs Broker that the classification under CTH 8518 was made as per the directions of the importer, which fact stood duly supported by the Show Cause Notice issued by the DRI to the importer. The Commissioner has thus concluded that there was no violation of any of the Regulations, as alleged in the Show Cause Notice, by the respondent-Customs Broker and being satisfied, has proceeded to drop the proposed proceedings. Other than filing the present appeal, the Revenue has not been able to dislodge the above findings of the lower authority, nor has it even denied the said findings as incorrect. The classification declared by the importer itself has been accepted and thus, there is no reason still to hold that there was wrong classification, any more. Hence, the charge against the respondent-Customs Broker for being hand in glove with the importer inviting such a hugely disproportionate action of suspension of its very Customs Broker Licence and forfeiture does not hold water. There are no infirmity in the impugned order of the Commissioner of Customs (Imports) and hence, the appeal filed by the Revenue is dismissed.

Summary

Issues Involved:
The appeal against the dropping of proceedings for revocation of suspension of the Licence of the Customs Broker.

Issue 1: Alleged failure of Customs Broker to advise on correct classification of imported goods

The Departmental Appeal was filed against the dropping of proceedings initiated for revocation of the Customs Broker's Licence due to alleged wrong classification by the importer. The Assistant Commissioner argued that the Customs Broker failed in its duty to advise the importer on appropriate classification, leading to a Show Cause Notice proposing Licence revocation. The Commissioner of Customs dropped the proceedings, prompting the Revenue's appeal.

Issue 2: Compliance with Customs Brokers Licensing Regulations (CBLR)

The Customs Broker, in response to the Show Cause Notice, denied any failure to comply with the CBLR requirements. The Advocate for the Customs Broker argued that the Broker's role is limited to advising on the Act's provisions and exercising due diligence, with classification falling under the importer's domain. The Commissioner accepted the Broker's explanations, noting no violation of Regulations and dropped the proceedings.

Judgment:

The Tribunal considered whether the impugned order was sustainable in law. The Inquiry Officer's report indicated that the Customs Broker classified goods based on importer instructions, not independently. The Commissioner noted consistency between the Broker's classification and the importer's directions, supported by the import invoice. The Tribunal found no violation of Regulations and upheld the Commissioner's decision to drop proceedings.

In a related case, the Tribunal upheld the importer's classification, indicating no wrong classification. This supported the Customs Broker's position and refuted allegations of collusion. Consequently, the Tribunal dismissed the Revenue's appeal, finding no fault in the Commissioner's decision.

(Order pronounced in the open court on 24.01.2024)