2023 (9) TMI 1391 - AT - Customs

Court overturns suspension of customs broker license due to procedural flaws and lack of justification

The court set aside the suspension of M/s CSK Shipping Private Ltd's customs broker license, citing procedural flaws and lack of justification for the ... Suspension of Customs Broker License in exercise of authority under regulation 16 of Customs Broker Licencing Regulations, 2018 - HELD THAT:- No case has been made out in the impugned order that continued operation of the appellant as ‘customs broker’ would prejudice public interest or jeopardizing the investigations. The decision to suspend the licence was taken on 19th September 2022 which is more than a month after the impugned goods had been seized; moreover, statement of responsible person in the appellant-company was also recorded well before such suspension and there is nothing contained therein that could have prompted such apprehension. Many months have passed since the impugned order and the timeframe prescribed for initiation of proceedings had also elapsed in the meanwhile. Learned Authorized Representative has not been able to shed any light on such proposal. One of the essential conditions for legitimize suspension is the intent to do so. The impugned order appears to have been issued without deliberating on such intent. The revocation of suspension of the licence directed with immediate effect - impugned order set aside - appeal allowed. Issues involved:The justifiability of suspension under regulation 16 of Customs Broker Licencing Regulations, 2018.Comprehensive details of the judgment:1. The appeal by M/s CSK Shipping Private Ltd challenged the suspension of its customs broker license based on non-compliances and misdeclaration in a specific bill of entry. The order of continuation post-suspension was issued after a post-decisional hearing. 2. The appellant questioned the applicability of the suspension provision, arguing that the circumstances for suspension were not present in this case. It was contended that the alleged offences were not due to any breach by the appellant. The Authorized Representative cited facts and breaches to support the dismissal of the appeal. 3. The judgment highlighted the narrow scope of the issue at hand, emphasizing the specific provisions regarding the suspension of a license under regulation 16 of the Customs Broker Licencing Regulations, 2018. 4. It was noted that the impugned order failed to demonstrate how the continued operation of the appellant as a customs broker would prejudice public interest or investigations. The decision to suspend the license was made after a significant delay following the seizure of goods, without clear justification. 5. Several months had passed since the impugned order, and the timeframe for initiating proceedings had lapsed. The lack of intent and deliberation behind the suspension decision was underscored, indicating a procedural flaw in the issuance of the order. 6. Consequently, the impugned order was set aside, and the suspension of the license was directed to be revoked with immediate effect.Separate Judgment:No separate judgment was delivered by the judges in this case.