Customs broker licence revocation fails when the foundational allegation of premature Let Export Orders is no longer supported.

Revocation of a customs broker licence under the Customs Brokers Licensing Regulations, 2018 cannot survive where the offence reports no longer support the foundational allegation that Let Export Orders were issued before the goods were carted. The disciplinary action was based on show cause notices alleging collusion among the broker, exporters and customs officers to secure higher drawback, but the charge against the officers who issued the Let Export Orders had been dropped in the underlying proceedings. Once that core allegation was removed, the basis for revocation and forfeiture of the security deposit ceased to exist, and both actions were set aside.

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Issues: Whether revocation of a customs broker licence and forfeiture of security deposit could be sustained when the offence reports forming the basis of the proceedings no longer supported the allegation that Let Export Orders were issued before the export goods were carted.

Analysis: The proceedings under the Customs Brokers Licensing Regulations, 2018 were founded on offence reports derived from show cause notices under the Customs Act, 1962. The core allegation was that the customs broker, exporters and customs officers had acted in concert and that Let Export Orders were issued before carting of the goods, thereby enabling higher drawback. The record showed that the charge against the officers who issued the Let Export Orders had been dropped in the underlying show cause notices. Once that foundational allegation was removed, the basis of the disciplinary proceedings under the licensing regulations ceased to exist.

Conclusion: The revocation order and forfeiture could not be sustained and were set aside in favour of the assessee.

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