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TMI Blog2025 (3) TMI 1197X X X X Extracts X X X X X X X X Extracts X X X X ..... f entry no. 8162485/05.10.2023 for assessment of the consignment as 'urea fertilizer' by a client of theirs. The notice dated 9th January 2024 alleged breach of regulation 10(d), 10(e), and 10(m) of Customs Brokers Licensing Regulations, 2018 for compromising customs clearance by obtaining 'out of charge' of 9th October 2023 on the strength of examination of only three containers. 2. It would appear that the fulcrum of the case is that the 'risk management system (RMS)' had stipulated 100% examination with representative sample to tested which was intimated through handwritten instructions by the customs official concerned on the bill of entry and that, while the samples were duly drawn, only three of the containers had been produced for e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that '7. The CB in his statement before CIU, JNCH stated that he had requested the docks officer to examine the goods in container itself after getting RMS 100% examination instruction. Further, the CB never took a pain to bring the matter to the docks Deputy Commissioner of Customs or Assistant Commissioner of Customs as the examination of goods is being escaped after getting RMS instruction 100% examination. If the CB had taken efforts to examine the goods 100%, the violation of RMS instruction would have not been taken place.' 4. We are concerned only with these two charges therein as that of having breached '(m) discharge his duties as a Customs Broker with utmost speed and efficiency and without any delay' in regulation 10 of Cus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion nor the extent for benefit to be derived by the importer - the means and the motive - appears to have been considered for drawing upon the allegations of breach of obligations in regulation 10 of Customs Broker Licencing Regulations, 2018 which were confined to obligations that pertain, in essence, to advising the client to comply with relevant laws and ascertainment of information furnished to client as being correct. 6. By its very nature, and the context of the Customs Broker Licencing Regulations, 2018, framed under the authority of section 146 of Customs Act, 1962 which empowers appointment of 'customs brokers' found fit, from knowledge and wherewithal, to handle consignments for importers and exporters by the licencing authority, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Rs. 1,250 each TEU) and confirmation thereof from 'closed circuit television cameras' installed at the examination area, and thus establishing failure to advise the client to comply with the provisions of the Act, allied Acts and Rules and Regulations and failure, upon non-compliance thereof, to bring the matter to the notice of the Deputy Commissioner/Assistant Commissioner as the case may be. 8. The submissions of the Learned Authorized Representative that these suffice to establish breach of regulation 10(d) of Customs Brokers Licensing Regulations, 2018 from the conclusion that the appellant had failed to advice the client to compliance with the laws and rules fail to pass muster. Learned Counsel for the appellant pointed out that fai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ard holder is not expected to present for the entire duration of clearance. We fail to appreciate this diversion of responsibility in ensuring the presence of only authorized personnel in customs areas. That his presence was contrary to standing orders, if at all, is not to blamed more on the customs access system than on the appellant. 11. We find no evidence to charge the customs broker with not advising the client on requirement to comply with the statues; nor of participation in compelling customs officials not to carry out examination. There is, thus, no evidence to hold that regulation 10(d) of Customs Brokers Licensing Regulations, 2018 had been breached except as noticed supra. 12. Insofar as requiring the customs broker to exerci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of employee of the customs broker with customs officials that does not fall within the purview of regulation 10(e) of Customs Brokers Licensing Regulations, 2018. Consequently, the facts alleged has no bearing on this particular obligation or breach thereof. 14. In the light of above, we find no reason to affirm the findings of the licensing authority in entirety. There is no defence from the appellant about the cause of non-compliance with inspection requirements in full and, in absence thereof, responsibility is to be presumed, at least partially, even if of no serious consequence. Consequently revocation of licence with forfeiting of security deposit is set aside. Imposition of penalty of Rs. 50,000 is sustained. ( Order pronounced in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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