Customs House Agent discipline requires proof of deliberate misconduct; mere inadequate advice or unproven KYC lapses cannot justify revocation.

Extreme disciplinary action against a Customs House Agent requires cogent evidence of deliberate misconduct or connivance, not merely alleged lapses in KYC compliance or inadequate advice to the importer. The record showed that the agent had obtained and verified the documents furnished, filed the bill of entry on that basis, and that the enquiry and adjudication findings were internally inconsistent on the alleged breach. In the absence of proof of active complicity or a serious violation justifying revocation, the revocation of the CHA licence and forfeiture of the security deposit were set aside.

---

---

Issues: Whether revocation of the CHA licence and forfeiture of security deposit were justified on the of failure to comply with KYC obligations, improper advice to the importer, and alleged connivance in the import of prohibited goods.

Analysis: The enquiry report and the adjudication findings were found to be internally inconsistent on the alleged KYC lapse. The record showed that the CHA had obtained the relevant documents, verified the client details in the ordinary course of business, and filed the bill of entry on the basis of the documents furnished by the importer. Mere omission to advise the importer more elaborately about the nature and classification of the goods did not establish active connivance or any positive misconduct. In the absence of evidence showing deliberate complicity or serious breach warranting the extreme measure of licence revocation, the impugned action could not be sustained.

Conclusion: The revocation of the CHA licence and forfeiture of the security deposit were not justified and were set aside.

Ratio Decidendi: Extreme disciplinary action against a Customs House Agent requires cogent evidence of deliberate misconduct or connivance, and cannot rest on mere inadequacy of advice or unproven allegations of breach of client-verification obligations.

---