2023 (11) TMI 913 - AT - Customs

Tribunal Reverses Customs Broker License Revocation, Overturns Rs. 50,000 Penalty; Actions Deemed Compliant with Regulations.

The Tribunal allowed the appeal, setting aside the revocation of the Customs Broker License and the penalty of Rs. 50,000 imposed on the appellant. It ... Revocation of Customs Broker License of the appellant - levy of penalty - non-compliance with the conditions of the Circular No.25 dated 14.08/2013 read with CBIC Circular No.34/2013 dated 04.09.2013 or not - HELD THAT:- To initiate proceedings against the appellant under Customs Broker Licensing Regulations, 2018 are based on a case booked against the importer M/s. Shree Ganesh Jewellery House (I) Ltd. for which the appellant filed 5 Bills of Entry and cleared the goods. In that case, after post-importation importer could not fulfill the conditions of imports, therefore, the proceedings were initiated and the appellant was penalized for a penalty of Rs.25.00 Lakhs. Further, the proceedings against the appellant in the impugned order has been initiated based on the penalty imposed on the appellant which has been set aside by this Tribunal in M/S INDO FRIENDS AGENCY, M/S OCEAN SHIPPING & CLEARING AGENCY AND M/S BRINK’S INDIA PRIVATE LIMITED VERSUS COMMISSIONER OF CUSTOMS (AIRPORT & ADMN.) , KOLKATA [2023 (7) TMI 1070 - CESTAT KOLKATA], in that circumstances, it is held that the impugned proceedings under the Customs Broker Licensing Regulations, 2018 are not sustainable against the appellant. The order of revocation of Customs Broker License and imposing penalty of Rs. 50,000/- on the appellant under the said Regulation is set aside - Appeal allowed. Issues: Appeal against revocation of Customs Broker License and imposition of penalty.Summary:The case involved an appeal against the revocation of the Customs Broker License of the appellant and the imposition of a penalty of Rs. 50,000. The appellant, a Customs Broker, dealt with the importation of gold by a company and filed Bills of Entry for Bond. The goods were sent to a Bond for safekeeping. Subsequently, the importer engaged another Customs Broker for clearance for home consumption, which led to non-compliance with certain conditions. This resulted in penalties being imposed on both the importer and the appellant, leading to the revocation of the appellant's license. The appellant contended that their role ended once the goods were sent to the Bond, and they were not responsible for post-importation compliance issues. The appellant also highlighted a previous Tribunal decision where the penalty imposed on them was set aside.The Tribunal noted that the proceedings against the appellant were based on a case involving the importer's non-compliance with import conditions, for which the appellant had filed Bills of Entry and cleared the goods. However, the Tribunal referenced a previous decision where it was established that the appellant's role was limited to filing Bills of Entry and clearing the goods for home consumption. The Tribunal concluded that the penalties imposed on the appellant were not justified, as their actions were in accordance with the relevant regulations. Therefore, the Tribunal set aside the revocation of the Customs Broker License and the penalty imposed on the appellant.In conclusion, the appeal was allowed, and the order revoking the Customs Broker License and imposing the penalty was set aside, providing the appellant with consequential relief.