2024 (3) TMI 1297 - AT - Customs

Revocation of Licenced Customs Broker Licence - violation of Regulations 10(d) 10(e) and 10(i) - forfeiture of security deposit - Penalty - Appraiser at the CFS Chennai demanding and accepting undue advantage from the Custom House Agents (CHA) for issuing Let Export Order / out of charge order on the consignments and registration of bills pertaining to import/export - HELD THAT - The entire proceedings are based on CBI report which in turn is based on the slips and vouchers recovered from the customs officials the appellant and various statements of the employees. These are only allegations/charges arrived at a preliminary stage which is yet to be corroborated with the evidences and to be finalised by the CBI. Moreover based on the same set of facts the Customs Brokers are penalised differently either by imposing only penalty or by revocation of license along with imposition of penalty as is the case of the present appellant. Based on the facts and allegations levelled against the appellant and the facts placed on record do not in any way prove the contravention of clause 10(d) and (e) of the Regulations and to invoke clause 10(i) the allegations/charges are yet to be proved by the competent court. Moreover the decisions relied upon by the appellant clearly observed that the appellant cannot be penalised for the actions of the employee when there is no proof on record to establish that the conduct of the employee was authorised by the appellant. Thus the entire proceedings being based on CBI report which is pending adjudication are pre-mature and without any basis. We set aside the impugned order and allow the appeal.

Summary

Issues involved:
The issues involved in this case are the revocation of license, forfeiture of security deposit, and imposition of penalty under Regulation 14 and 18 of the Customs Broker Licensing Regulations (CBLR) 2018 based on alleged contravention of Regulations 10(d), 10(e), and 10(i) of the CBLR.

Revocation of License and Imposition of Penalty:
The appeal was against an Order revoking the license of the appellant (Customs Broker) along with forfeiture of security deposit and imposition of a penalty of Rs. 50,000 under Regulations 14 and 18 of the CBLR 2018. The revocation was based on alleged contravention of Regulations 10(d), 10(e), and 10(i) of the CBLR.

Allegations and Defense:
It was alleged that the appellant's employee collected a bribe amount for clearance of a Shipping Bill, leading to the revocation of the license. The appellant argued that the amount collected was for legitimate expenses and not a bribe. The appellant requested cross-examination of witnesses, which was denied. The appellant cited precedents to argue that they should not be held liable for the actions of their employees.

Judicial Findings:
The Tribunal found that the allegations were based on a preliminary CBI report and were yet to be corroborated with evidence. The Tribunal noted that the Regulations cited for revocation and penalty were not proven to have been contravened. The Tribunal also considered precedents stating that the appellant cannot be penalized for the actions of their employees without proof of authorization.

Decision:
Based on the lack of concrete evidence and premature nature of the proceedings, the Tribunal set aside the Order revoking the license and imposing a penalty, allowing the appeal. The Tribunal emphasized that the proceedings remained as allegations without a solid basis, pending further adjudication by the competent court.