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TMI Blog2023 (7) TMI 115X X X X Extracts X X X X X X X X Extracts X X X X ..... ss-examination - there are no finding on the charges that could justify the conclusion that these were correctly held to be proved. It is not in dispute that the derelict individual was discharged from employment and relived of his directorship promptly. It is also not alleged anywhere that the other directors were parties to, or cognizant of, the scheme of deception to avail incentives undeservedly. Nor is there any evidence the appellant derived any financial compensation, small or large, from the exporter. Indeed, the impugned order is categorical solely on the vicarious role of the appellant in the entire mis-demeanour. Therefore, the finding of charges for breach of regulation 10 of Customs Broker Licencing Regulations, 2018 has no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Broker Licencing Regulations, 2018, by Commissioner of Customs (General), New Custom House, Mumbai, is their claim of injustice having been done to them on the ground that the impropriety of their Director, Bhavin Vijay Pujari, operating for his personal benefit in dealing with M/s Dhariya International, an exporter, has been unfairly laid at their door. Their primary contention that it is not they but the said individual, also the G card holder of the licencee, had been proceeded against for imposition of penalties under Customs Act, 1962 in notice dated 31st May 2019. It was further contended by them that he had since resigned his directorship and that the appellant had also terminated his employment. 2. Briefly, M/s Dhariya Interna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Licencing Regulations, 2018 and that the inquiry had been undertaken in the absence of the appellant after refusal of the inquiry authority to allow cross-examination of the two individuals whose statements were proposed to be used against them. 4. Learned Authorized Representative argued that the resignation of the employee was nothing but an afterthought and that the appellant clearly stood to benefit from the conspiracy to secure incentives that the exporter was not entitled to. 5. On perusal of the inquiry report and the impugned order, we note lack of any finding on each of the charges levelled against them. Both these records merely note the facts leading to the suspension, the statements of the employee and exporters and justi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cum G card holder has never obtained proper authorizations in the first place. Since they are hand in glove with the Exporter to cheat the Government, giving a proper advice or exercising due diligence does not arise at all. Neither the CB was carrying out his responsibility of verifying the KYC of the client through independent reliable sources. As per the Regulation 13(12) the CB shall be held responsible for the acts of his employees in conducting the customs broker business. By saying that their G card holder cum Director has acted in his personal capacity, the CB cannot escape his responsibilities. 16.9 Thus, From the above facts, I conclude that Customs Broker M/s D.P. Logistics Pvt. Ltd. CB No. 11/348 did not exercise due dili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not an active participant in breach of Customs Act, 1962; such a separate provision is redundant if every breach by an employee were to be treated as breach by licencee. Therefore, while on the finding of the licencing authority supra, the appellant cannot be held to have been in breach of regulation 10 of Customs Broker Licencing Regulations, 2018, on failure to ensure responsible discharge of duties by an employee, which has not been repelled in their submissions, the charge of breach of regulation 13(12) of Customs Broker Licencing Regulations, 2018 must be held as proved. 8. Detriment must, invariably, be proportionate to the offence. In the light of the truncated findings of ours, interests of justice would be adequately served b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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