2015 (10) TMI 760 - AT - Customs

Failure to fulfil obligation of Custom Broker Suspension of broking license Applicant-CHA filed 11 Bills of entry for clearance of goods for importer-describing said goods as Silicon Electrical Steel Strips/scrap originated from old and used dismantled transformer under Tariff item 72044900 It however, appeared to Department that impugned goods are used silicon electrical steel strips, being cleared under guise of scrap appellant CHA failed to advise importer to obtain license or authorization for said import of second hand goods and by not advising importer into this matter, applicant violated obligation under regulation 11 (d) of CBLR 2013 Consequently, license of applicant was suspended Held that - only upon establishing/determining whether impugned goods are steel strips or metal scraps, violation of Regulation 11 (d) of CBLR, 2013 on part of applicant CHA could be ascertained Admittedly applicant is suffering as his livelihood is affected by not allowing him to operate his business as Customs broker since his license was suspended In view of peculiar circumstances, it is appropriate to stay order of suspension Accordingly, order is stayed.

Summary

Issues:
1. Application for stay of order suspending Customs Broker License.
2. Challenge to notice issued under CBLR regulations.
3. Alleged violation of CBLR regulations by Customs Broker.
4. Discrepancy in classification of imported goods.
5. Impact of suspension on Customs Broker's livelihood.
6. Decision on staying the suspension order.

Analysis:
1. The judgment pertains to an application seeking a stay on the order suspending a Customs Broker License, which was confirmed by the Commissioner of Customs. The suspension was based on the violation of regulation 19(2) of the CBLR, 2013.
2. The applicant challenged the notice issued under CBLR regulations, specifically mentioning the vires of regulations 18 and 20. The matter was pending before both the Tribunal and the Calcutta High Court, with similar issues being raised in both forums.
3. The Customs Broker was alleged to have violated regulation 11(d) of the CBLR, 2013 by failing to advise the importer to obtain the necessary license or authorization for importing second-hand goods, leading to the suspension and subsequent confirmation of the suspension.
4. The case involved a discrepancy in the classification of the imported goods, described as "Silicon Electrical Steel Strips/scrap," which raised questions about their importability under relevant provisions.
5. The impact of the suspension on the Customs Broker's livelihood was considered significant, as it affected the individual's ability to operate the brokerage business. The Tribunal acknowledged the adverse consequences faced by the applicant due to the suspension.
6. After hearing both sides, the Tribunal decided to stay the suspension order, emphasizing the need to establish the nature of the imported goods before determining any violation of the regulations. The stay was granted with the expectation that the revocation proceedings would be completed promptly, ideally within three months, to address the situation effectively.

This comprehensive analysis outlines the key issues addressed in the judgment, including the legal challenges, regulatory violations, classification discrepancies, livelihood impact, and the decision to stay the suspension order pending further proceedings.