Right to cross-examination under Customs Brokers Licensing Regulations upheld; revocation of licence set aside for natural justice breach.

Denial of the right to cross-examine witnesses relied upon in a licence-revocation inquiry breached the principles of natural justice and vitiated the disciplinary proceedings. The Tribunal (CESTAT) set aside the Commissioner's order revoking the customs broker licence because the inquiry officer refused cross-examination of persons whose oral statements formed the basis of the case; non-adherence to the prescribed procedural requirement was therefore fatal. The High Court found no substantial question of law arising from that conclusion and dismissed the appeal, affirming that breach of mandatory procedural protection cannot sustain the revocation order.

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Issues: Whether revocation of a customs broker's licence and related penalties could be sustained where Regulation 17(4) of the Customs Brokers Licensing Regulations, 2018 (entitling the broker to cross-examine witnesses examined in support of the grounds for proceedings) was not complied with.

Analysis: Regulation 17(3) requires consideration of documentary and oral evidence relevant to the grounds of inquiry and permits questions to persons tendering evidence. Regulation 17(4) explicitly entitles the customs broker to cross-examine persons examined in support of the grounds, and mandates that if permission to examine is declined the reasons be recorded in writing. The inquiry in the present matter proceeded on oral statements recorded (including statements under Section 108 of the Customs Act, 1962) which were not made available for cross-examination as required by Regulation 17(4). Precedential authority addressing an identical provision in earlier regulations found that non-compliance with the provision amounted to violation of procedural requirements and principles of natural justice, and such breach vitiates an order based on the inquiry report.

Conclusion: The revocation of the customs broker's licence and related penalties cannot be sustained because of non-compliance with Regulation 17(4) of the Customs Brokers Licensing Regulations, 2018; the appellate order setting aside the revocation is justified.

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