2018 (7) TMI 107

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....ppellant is a licensed Customs House broker based in Hyderabad and were issued Customs Broker Licence No. 06/2008, under Regulation 6 of CBLR, 2013. As permitted under the Regulations, they also operate in Customs offices at Delhi. The office of the New Customs House, Delhi received information regarding some exporters committing frauds by over invoicing exports with an intent to avail excess drawback and the SIIB, New Customs House had booked a case against these exporters. It was found during investigation that the appellant was the customs broker who processed these documents. Accordingly, the appellant was prohibited from operating in New Customs House, Delhi. A letter dated 28.09.2017 was sent by New Customs House, Delhi to the office ....

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.... produce their original licence to make necessary endorsement extending the period of their licence by 10 years i.e. upto 25.05.2028. 4. Ld. Counsel for the appellant relied upon the following case laws: (a) Principal Commissioner of Customs (Genl) vs. Durga Clearing Pvt. Ltd. [2018(359)E.L.T 45 (Bom.)] (b) On Time Logistics vs. CC, Indore [2017(348) E.LT. 145 (Tri.- Del.)] (c) Ambika Enterprises vs. CC (Import & Genl), New Delhi [2016(343)ELT 1022 (Tri.-Del.)] (d) Saro International Freight System vs. CC, Chennai-VIII [2016(334) E.L.T 289 (Mad.)] (e) Innovative Cargo services vs. CC (General) [2017(356)E.L.T 181 (Del.) Ld. Counsel argued that the suspension of licence under Regulation 19 i....

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....o the Custom House Broker within a period of 90 days from the date of receipt of offence report stating the grounds on which it is proposed to revoke the licence or impose penalty. In this case, the offence was allegedly committed in the New Customs House, Delhi and they intimated the Principal Commissioner of Customs, Hyderabad based on which their licence was suspended. For the sake of clarity of event, we reproduce para 17 of the Order-in-Original: "17. Basing on the above cited letter dated 28.09.2017, this Office vide letter C.No. S/3/CHA/21/2008-Cus-Tech, dt. 17.10.2017 has suspended the CB licence under Regulation 19(1) of CBLR, 2013 pending further investigation and enquiry in the matter and a personal hearing was fixed on ....

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....ioner of Customs, Hyderabad. 8. In view of the above, we find that suspension of licence of the Customs broker is no longer justified and cannot be used as a substitute for revocation of his licence or imposition of penalty on him under CBLR. This legal position is settled in the case of Principal Commissioner of Customs (Genl) vs. Durga Clearing Pvt. Ltd. [2018(359)E.L.T 45 (Bom.)] and On Time Logistics Vs. CC, Indore [2017(348)E.L.T 145 (Tri.-Del.)]. In this particular case, there is an additional factor that the application of the appellant under Regulation 9(2) for renewal of licence has been acknowledged by the Office of the Principal Commissioner of Customs, Hyderabad and the appellant has been advised to produce the original licen....