9911796707
TMI Blog2024 (7) TMI 1174X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the respondents in situations where they be of the opinion that immediate action is required to be taken against a CB pending investigation and inquiry as is contemplated under Regulation 16 - the CESTAT has in effect handed down an order as a result of which an order of suspension would continue in perpetuity. The impugned is thus rendered unsustainable on this score alone. A reading of Regulation 10 (n) reveals that the CB would not be in violation of its obligations if he has relied on reliable, independent, authentic documents, data or information such as the IEC and GSTIN which are issued by the Director General of Foreign Trade [DGFT] and GST Officers respectively. Furthermore, Regulation 10 (n) does not necessitate a physical v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ght of the obligations conferred upon the CB by the Regulations CBLR, 2018 and the proven fraudulent act and conduct of CB on record, we hold that suspension of his licence is quite a proportionate penalty. The order under challenge is upheld to this extent. In the light of the entire above discussion, holding that there is no violation of Regulation 10 (e) has been set aside but violation of Regulation 10 (n) of CBLR, 2018 by the appellant has been confirmed with confirmation that CB licence, in given circumstances is proportionate penalty. Hence, the appeal stands party allowed and cross-objections stands allowed, consequently licence stands suspended. 2. The appellant was a Customs Broker [CB] which was granted a licence on 12 April 2017 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... addressed on merits, we find that the order impugned before us is liable to be set aside for the following reasons. 6. As is manifest from a reading of paragraph 21 of the impugned order, the CESTAT upon finding that the appellant had facilitated fraudulent exports proceeded to observe that suspension of the license of the appellant was a proportionate penalty . It came to the aforesaid conclusion despite having found that no violation of Regulation 10 (e) had been made out. It had on an ultimate analysis come to the conclusion that the appellant was guilty of infracting Regulation 10 (n). 7. However, the CESTAT has clearly committed a patent illegality in construing suspension to be a penalty which is otherwise contemplated under the CBLR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would have been sufficient to warrant the order impugned before us being set aside, we have also examined the appeal from the angle of a purported violation of Regulation 10 (n) of the CBLR 2018. Our attention in that respect was drawn to the order dated 05 October 2020 passed by the Commissioner of Customs which had duly taken note of the statement of Shri Zoheb Moin, the authorised representative and manager of M/s Fine Overseas, which had been recorded on 04 April 2019 under Section 108 of the Customs Act, 1902 [1902 Act] . The same is extracted hereinbelow: Statement of Shri Zoheb Moin, authorised representative of M/s. Fine Overseas was recorded on 04.04.2019 under Section 108 of the Customs Act, 1902, wherein he, inter-alia, stated t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsultant Pvt. Ltd. in the financial year 2018-19; and they exported the goods i.e. Clutch plates at the rate of Rs.850/ and the Glass item Rs. 250/- to 400/- with 15% margin; and they file regular GST returns and taxes of M/s. Fine Overseas (IEC-BREPS9644C), and submitted the Supplier's tax invoices. Supplier's e-way bills, Supplier's return and Transporter documents for the exported goods from JNCH Port. Further, he inter-alia staled that they adjust the IGST on export against the Input Tax Credit (ITC) received against purchased made from different suppliers of M/s Fine Overseas and he submitted the Electronic Credit Ledger Report from August 2018 to September, 2018; and stated that the company was formed in July, 2018 but the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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