2018 (11) TMI 39 - AT - Customs

Suspension of CHA License - Regulation 19 (2) of CBLR 2013 - suspension on the ground that the containers contained undeclared goods - the licence of the customs broker / appellant has been suspended indefinitely - Held that - The finding in the impugned order is that the appellant did not directly collect the authorization letter and KYC norms from the importer but got the same through Mr. Jayakumar of Easwar Logistics which is clear violation of obligation under Regulation 11 (a) and (m) of CBLR 2013. The Regulation does not specifically mention that customs broker has to obtain KYC norms from the importer directly. It only states that appellant has to comply with obtaining the KYC documents - It is also not the case of the department that the appellant has played any active role in the importation of misdeclared consignment. Further even after 9 months of issuing the SCN, so far there has been no proceedings for revocation of the licence - Department cannot issue orders of suspension indefinitely in the guise of revocation of licence so as to obstruct the customs broker from engaging in his activities of livelihood indefinitely. The impugned order for continuation of suspension of customs broker licence is unjustified - appeal allowed - decided in favor of appellant.

Summary

Issues:
Suspension of Customs Broker Licence under CBLR, 2013

Analysis:
The appellant's Customs Broker Licence was suspended under the Customs Broker Licensing Regulations, 2013 (CBLR, 2013) due to discrepancies in the importation process. The appellant had filed Bills of Entry for the import of furniture on behalf of an importer, but the containers were found to contain undeclared goods upon examination. The suspension was based on the appellant not directly collecting authorization letter and KYC norms from the importer, instead obtaining them through a third party. The department alleged that this indirect collection led to the non-declaration of goods in the containers. The appellant argued that there was no active involvement in misdeclaration and compliance with KYC norms was maintained before filing the Bills of Entry. The department issued a show cause notice but failed to proceed within the prescribed time limit, leading to the appellant's appeal to set aside the suspension order.

The department contended that the non-declaration of goods occurred due to the appellant's failure to directly obtain KYC documents from the importer. The identity of the importer was not available, and the department emphasized that proceedings were ongoing based on the show cause notice issued.

Upon hearing both sides, the Tribunal found that the suspension of the appellant's licence was unjustified. The impugned order for the continuation of the suspension was set aside as it was deemed to be in excess of the powers granted under CBLR 2013. The Tribunal highlighted that the appellant had not played an active role in the misdeclaration of goods and that the department had not proceeded within the prescribed time limit. Emphasizing the importance of adhering to regulatory time limits, the Tribunal allowed the appeal, granting consequential benefits as per the law.

In conclusion, the Tribunal ruled in favor of the appellant, setting aside the suspension order of the Customs Broker Licence. The decision was based on the lack of direct involvement in misdeclaration, failure to adhere to prescribed time limits for proceedings, and the unjustifiably indefinite nature of the suspension order.