Tribunal decision: License revocation set aside, penalty upheld under Customs Broker Licensing Regulation.

The tribunal set aside the revocation of the license for M/s Sonak Shipping Services but upheld the forfeiture of the security deposit and penalty under the Customs Broker Licensing Regulation, 2018. The tribunal found that while there was no requirement for physical visits to the client's premises, familiarity with the client's background was necessary. The decision was made on 22.12.2022.

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Issues: Revocation of license, forfeiture of security deposit, imposition of penalty under Customs Broker Licensing Regulation, 2018

Revocation of License:
The appeal by M/s Sonak Shipping Services against the revocation of their license under regulation 14 of the Customs Broker Licensing Regulation, 2018 was based on the clearance of goods imported by their clients, M/s Pratibha Traders, allegedly comprising goods subject to 'anti-dumping duty'. The licensing authority found breaches of various regulations and imposed detriments. The appellant argued that the initiation of proceedings was based on non-ascertainment of the importer's premises and misuse of Import Export Code (IEC) by an intermediary. The appellant contended that there was no requirement for a customs broker to visit the client's premises and that the timelines in the regulation were breached. However, it was observed that the appellant had not verified the importer's premises, and the enquiry focused on technical aspects without determining the broker's contribution to smuggling. The licensing authority revoked the license, but the tribunal set aside the revocation, maintaining the forfeiture of the security deposit and penalty.

Forfeiture of Security Deposit and Imposition of Penalty:
The proceedings under the Customs Broker Licensing Regulation, 2018 resulted in the forfeiture of the security deposit and a penalty of Rs. 50,000 under regulation 18. The appellant argued that the pandemic justified non-compliance with timelines and that the issue was not merely unfamiliarity with the importer's premises but the misuse of IEC by an intermediary. The tribunal noted that there was no requirement to visit the client's premises in person, but norms for familiarity with the client's background were mandated. The enquiry did not establish the broker's contribution to smuggling, and the appellant failed to discharge their obligation. The tribunal upheld the forfeiture of the security deposit and penalty, considering the nature of the broker's lapse, while setting aside the license revocation.

Conclusion:
The tribunal disposed of the appeal by M/s Sonak Shipping Services, setting aside the revocation of the license but upholding the forfeiture of the security deposit and imposition of the penalty. The decision was pronounced in open court on 22.12.2022.

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