9911796707
TMI Blog2025 (3) TMI 1196X X X X Extracts X X X X X X X X Extracts X X X X ..... nkar (holder of customs broker licence no. 11/41) who had been proceeded against, as consequence of action initiated against exporters of 'cut and polished diamonds' under Customs Act, 1962, for alleged acts of omission and commission that were imputed to be in breach of regulation 10 of Customs Brokers Licensing Regulations, 2018. 2. The claim of the Learned Counsel appearing for the appellant is that the enquiry proceedings had exonerated the appellant of all the charges of having breached regulation 10(d), 10(e), 10(n) and 13(2) of Customs Brokers Licensing Regulations, 2018 and that the licensing authority had, without any basis, disagreed thereon to order of revocation of the licence along with forfeiture of the entire amount of secur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt to comply with the provisions of the Act and other statutes and appendant obligation to bring non-compliance to the notice of designated authority, has been fastened on the appellant on the presumption that the broker was aiding and abetting illegal export. It was also pointed out that retraction of the statements relied upon to frame the allegation by the deponents before the enquiry officer had not deterred the licensing authority who, instead, sought to apply parameters set out in various decisions arising from consequence of retraction to adjudication proceedings and not even one decision pertaining to proceedings under Customs Brokers Licensing Regulations, 2018 - which is not about 'fiscal liability' owed to the State - intended to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Brokers Licensing Regulations, 2018 relied upon statements which, inter alia, admitted that person purportedly to be an employee of the exporter had accompanied him for the several clearance requirements. 8. Learned Authorised Representative reiterated the facts that persuaded the licensing authority to conclude that breach of regulation 10(d), regulation 10(e) and regulation 10(n) of Customs Brokers Licensing Regulations, 2018. It was argued by him that the broker was aware of the meagre financial resources with the exporter as well as lack of capacity to handle consignment of such magnitude and that the failure on the part of the appellant to interact with exporters was apparent from the lack of knowledge admitted to by the directors dur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are, thus, not limited to the former but to the latter and licensing authority would be incorrect in invoking some of the obligations with express dissatisfaction of the client having been placed on breach. Initiation of proceedings unilaterally by the licensing authority is inappropriate and should necessarily have been preceded by complaint or grievance adduced by the client to the licensing authority. In the impugned order, there is neither hint nor whisper of such grievance on the part of the client and yet that did not deter the licensing authority from holding that the customs broker had deviated from the obligations set out in regulation 10(e) of Customs Brokers Licensing Regulations, 2018 which only the client could be concerned wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the licensing authority was aware of the manner in which the goods were subjected to be valuation without which the role of the customs broker in overvaluation is not ascertainable. There is no evidence on any other aspect of assessment and clearance that was breached by the customs broker. There is, thus, no evidence to conclude that the licensing authority was correct in determining breach of regulation 10(d) of Customs Brokers Licensing Regulations, 2018. 11. It has been alleged that the appellant had failed to exercise due diligence on supervision over the acts of the employees. It may well be that the employees of the appellant had dealt a person with other than one of the directors of the exporting organization. It may also be that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said Regulation, existence of documentation would suffice as compliance. There is no allegation that the client was not in possession of genuine importer-exporter code (IEC) or, for that matter, of GST registration. Nonetheless, the records do show that no operations appeared to have been carried out at the declared address of the exporter. Whether verification of the premises would have prevented overvaluation of goods is moot; however, that the exporter did not operate at the declared address indicates that the verification carried out by the customs broker was but cursory or non-existent. Licences issued to customs brokers is not merely an entry into practice of a trade or profession but is contingent upon expectation on the part of lice ..... X X X X Extracts X X X X X X X X Extracts X X X X
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