2023 (5) TMI 669 - AT - Customs

Revocation of Customs Broker License - forfeiture of security deposit - levy of penalty - violation of regulation 10(b), 10(d) 10(n) of Customs Broker Licensing, Regulation 2018 - non-production of any evidence to show that Girish Kumar is her authorized employee - Dinesh Bhardwaj, G-Card Holder, being paid by Girish Kumar Prop. of Global Art Logistics and the appellant subleased its license to Girish Kumar since 2017 - HELD THAT - The submissions made by the Ld. Counsel for the appellant do not have force and are devoid of merit. There are serious allegations made in the show cause notice dated 19.07.2022 against the appellant for contravention of regulation 10(b), 10(d) and 10(n) of licensing regulation, 2018. It is also found that on the alleged allegations an inquiry officer was appointed who after affording adequate opportunity to the appellant submitted the inquiry report on the basis of which show cause notice was issued and the allegations of violation were proved against the appellant. Ld. Commissioner in the impugned order has considered each and every submission made by the appellant and has given reasoned finding. Division Bench decision of the principal Bench in the case of Swastik Cargo Ageny Vs. commissioner of Customs 2023 (2) TMI 677 - CESTAT NEW DELH relied upon by the DR wherein identical allegations were there against the customs broker and the Division Bench after considering the various decisions of the hon ble Supreme Court and the High Court has upheld the revocation of Customs broker license of the customs broker. The appellant is found to be guilty of violation of regulation 10(b), 10(d) and 10(n) CBLR, 2018 - there are no infirmity in the impugned order passed by the Commissioner Ludhiana - appeal dismissed.

Summary

Issues Involved:
1. Revocation of Customs Broker License under regulation 17(1) of Customs Broker Licensing Regulation, 2018.
2. Alleged violations of regulation 10 and 13(12) of CBLR, 2018.
3. Forfeiture of security under regulation 14 of CBLR, 2018.
4. Imposition of penalty under regulation 18 read with Regulation 14 of CBLR, 2018.

Summary:

Issue 1: Revocation of Customs Broker License
The appellant's license was revoked by the Commissioner of Customs, Ludhiana, based on a show cause notice alleging misdeclaration and undervaluation of goods intended for export. The investigation revealed that the appellant had subleased her license to Shri Girish Kumar of M/s Global Art Logistics, who used it to export E-waste under the guise of "100% Plastic PCB." The inquiry concluded that the appellant violated regulation 10(b), 10(d), and 10(n) of CBLR, 2018. The Tribunal upheld the revocation, noting serious allegations and a well-reasoned order by the Commissioner.

Issue 2: Alleged Violations of Regulation 10 and 13(12) of CBLR, 2018
The appellant was found to have subleased her license and facilitated the export of misdeclared goods, violating regulation 10(b), 10(d), and 10(n) of CBLR, 2018. The Tribunal referenced the role and responsibilities of a Customs Broker, emphasizing the importance of trust and compliance with regulations. The appellant's failure to supervise and the unlawful agreement with Girish Kumar were highlighted as significant breaches.

Issue 3: Forfeiture of Security under Regulation 14 of CBLR, 2018
The Commissioner of Customs ordered the forfeiture of the appellant's security deposit, citing the violations of CBLR, 2018. The Tribunal supported this action, referencing the findings of the inquiry officer and the appellant's failure to provide evidence countering the allegations.

Issue 4: Imposition of Penalty under Regulation 18 read with Regulation 14 of CBLR, 2018
A penalty of Rs. 50,000/- was imposed on the appellant for her violations. The Tribunal upheld this penalty, stating that the appellant's actions justified the punitive measures. The Tribunal also cited similar cases, such as Swastik Cargo Agency Vs. Commissioner of Customs, where the revocation and penalties were upheld under comparable circumstances.

Conclusion:
The Tribunal dismissed the appeal, affirming the revocation of the Customs Broker License, forfeiture of security, and imposition of the penalty. The judgment emphasized the critical role of Customs Brokers in ensuring compliance and the severe consequences of violating regulatory obligations.