2018 (4) TMI 551 - AT - Customs

Appellate tribunal overturns Customs Broker license denial, citing jurisdictional errors

Babaji Shivram Clearing & Carriers Pvt. Ltd. Versus Commissioner of Customs, Vijayawada

The appellate tribunal set aside the denial of renewal of the Customs Broker license at Kakinada Customs, allowing the appellant to continue operating ... Renewal of the CB license - an inquiry is pending in the parent Custom House - Regulation 7 (2) of the CBLR 2013 - Form C - Held that: - although there is no bar for verification of particulars given in Form “C” however these should not be used as a “means” of operating or denying the right of the CHA to operate in that Commissionerate. The rejection of the permission to continue to operate at Kakinada Customs is therefore a peremptory one and is not supported by law. Appeal allowed - decided in favor of appellant. Issues:Renewal of Customs Broker license at Kakinada Customs denied based on pending inquiry cases against the appellant.Analysis:The appellants, a Customs Broker, applied for renewal of permission to extend their custom broker agency to operate at Kakinada Customs. The jurisdictional Customs Commissioner denied the renewal based on two pending inquiry cases against the appellant. The appellant made representations and requested reconsideration, emphasizing that the parent Commissionerate had renewed their license for 10 years despite the pending inquiry. The appellant argued that other customs stations had also endorsed the renewal of their license. The rejection was based on the pending inquiry in the parent Custom House, which the adjudicating authority stated did not automatically entitle the appellant to operate at Kakinada Customs. However, the appellate tribunal found fault with this conclusion. The New Custom House, Mumbai had renewed the appellant's license and had no objection to them operating at Kakinada Customs. The tribunal noted that one inquiry had been concluded with all charges dropped, and the other inquiry was based on a show cause notice that had been adjudicated in favor of the appellant. Despite the pending inquiries, the parent Commissionerate and other Customs Houses had renewed the appellant's permission to operate. The tribunal held that the denial of renewal was unjustified and set aside the impugned order, allowing the appellant to continue operating at Kakinada Customs until the original license's validity, unless suspended or revoked for other reasons under the Customs Broker Licensing Regulations, 2013.