2021 (11) TMI 961 - AT - Customs

Customs broker license suspension overturned due to late Show Cause Notice issuance. Tribunal emphasizes premature suspension.

M/s Mercantile & Marine Services Versus Commissioner of Customs, Cochin-cus

The Tribunal set aside the suspension of the Customs broker's license, ruling that the Show Cause Notice (SCN) issued beyond the prescribed 90-day limit ... Suspension of Customs Broker License - smuggling of gold - case of the Department is that the G-Card Holder of the appellant has accepted his role in the smuggling of the gold - HELD THAT:- The role of the appellants themselves has not been clearly established so as to necessitate the suspension of Customs Broker License. Learned Authorized Representative for the Department submits that the matter is still under examination and Enquiry by the Department. It is found that under the circumstances, the suspension of the license of the appellant is not warranted. Moreover, in the instant case, it has been reported that the SCN under CBLR has been issued. On completion of the enquiries and examination, the Department is free to take suitable action. The suspension of the license is not required. Therefore, the said suspension requires to be set aside - Appeal allowed - decided in favor of appellant. Issues:Suspension of Customs Broker License based on alleged violation of regulations - Timeliness of Show Cause Notice (SCN) issuance under CBLR, 2018 - Necessity of suspension in light of ongoing Departmental examination.Analysis:1. The case involved the suspension of a Customs broker's license due to an incident where gold was recovered from a baggage declaration filed by an individual. The G-Card Holder of the appellant admitted to investing in the seized gold. The appellant challenged the suspension, arguing that the impugned order alleging violations of regulations was not sustainable and that the SCN issued was beyond the prescribed time limit of 90 days as per Regulation 17 of the CBLR, 2018. The appellant relied on precedents emphasizing the mandatory nature of time limits under CBLR, such as the case of Manjunatha Cargo Pvt. Ltd. The appellant highlighted the impact of the suspension on livelihoods and business operations.2. The Authorized Representative for the Department contended that smuggling of gold is a serious offense warranting strict action. The Department emphasized the seriousness of the offense and cited cases like SSS Sai Forwarders Pvt. Ltd. and D.D. Cargo Agency to support their stance.3. After hearing both sides and examining the records, the Tribunal found that while the G-Card Holder admitted involvement in the smuggling, the appellant's direct involvement was not clearly established. The Department confirmed ongoing examination and inquiry into the matter. The Tribunal concluded that the suspension of the license was not warranted at that stage. They noted that the SCN had been issued, and the Department was free to take appropriate action after completing the necessary examinations. Therefore, the Tribunal set aside the suspension of the license, emphasizing that the decision did not prevent the Department from taking further action based on the proceedings initiated against the appellant.4. Ultimately, the Tribunal disposed of the appeal by setting aside the order suspending the license of the appellant. The Tribunal clarified that their decision did not hinder any future actions that the Department might deem necessary after completing the ongoing proceedings against the appellant. The order was pronounced in an open court on 23/11/2021.