Customs penalty revoked due to procedural flaws. Appellant's appeal successful.

The Tribunal set aside the penalty imposed on the appellant for violating Customs Brokers Licensing Regulations, citing procedural irregularities and lack of proper consideration of explanations. The appeal was allowed, and the penalty was revoked on 17.12.2021.

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Issues:
Violation of Customs Brokers Licensing Regulations - Penalty imposed under Regulation 18 read with Regulation 14 for contravention of Regulations 10(q) and 13(12).

Analysis:
The appeal was filed against the Order-in-Original passed by the Principal Commissioner of Customs, Chennai, imposing a penalty on the appellant for violating Customs Brokers Licensing Regulations. The appellant was issued a Show Cause Notice alleging contravention of various provisions. The appellant responded to the notice, but it was noted that the Inquiry Officer did not provide an opportunity for oral evidence as required by Regulation 17(3). Additionally, the appellant was deprived of the right of cross-examination under Regulation 17(4) due to the absence of a notice of hearing. The Tribunal found the Inquiry Report to be a mere formality, not meeting the requirements of Regulation 17(5).

Regarding the specific contravention of Regulation 10(q), the appellant provided a plausible reply, which was acknowledged in the Inquiry Report. However, the Assistant Commissioner did not challenge the appellant's good faith. The Tribunal concluded that the penalty was imposed in a mechanical manner without proper consideration of the appellant's explanations. As a result, the impugned order was set aside, the appeal was allowed, and the penalty was revoked. The decision was pronounced in open court on 17.12.2021.

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