Cross-examination and recorded reasons protected the customs broker from licence revocation and penalty.

The Customs Broker Licensing Regulations, 2018 required recorded reasons when cross-examination was refused, and denial of that request without written reasons was treated as a material procedural defect. Where the broker had sought cross-examination of persons whose statements formed the basis of the notice and inquiry, the disciplinary action could not be sustained on an incomplete evidentiary record. The alleged telephonic contact and active role in overvaluation were also found unsupported by adequate material. Revocation of the licence, forfeiture of the security deposit and penalty were therefore not sustained, and the broker's relief was upheld.

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Issues: Whether the customs broker's revocation and penalty could be sustained when cross-examination of persons whose statements were relied upon in the inquiry was denied without recorded reasons under the applicable Customs Broker Licensing Regulations.

Analysis: The appeal arose from disciplinary action against a customs broker under the Customs Broker Licensing Regulations, 2018. The deciding authority found that the broker had specifically sought cross-examination of persons whose statements formed the basis of the show cause notice and inquiry, yet such request was refused without written reasons. Regulation 17(4) required that, where cross-examination was declined, reasons had to be recorded. The authority also noted that the alleged telephonic contact and active role in overvaluation were not established on record with adequate material. The refusal to permit cross-examination, in the absence of recorded reasons, was treated as a material procedural defect.

Conclusion: The order revoking the licence, forfeiting security deposit and imposing penalty could not be sustained, and the appeal challenging the Tribunal's relief to the broker failed.

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