TaxTMI 
TaxTMI 
2021 (7) TMI 378
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....o. 52 (2015-20) dated 19.3.2020. This is a case of attempted smuggling of this fabric to China, mis-declaring the nature of goods and using the Importer Exporter Code (IEC) of a company without their knowledge or involvement. The present proceedings pertain to suspension of the license of the Customs Broker for their alleged failure to perform their obligations under Regulation 10 of CBLR, 2018 in the attempted illegal export. 3. The facts of the case, in brief, are that the appellant is a Customs Broker Licensed by the Commissioner of Customs (Airport & General), New Custom House, New Delhi. A Customs Broker who is licensed can operate in any Custom House across the country. The license is issued after due verification and conducting an examination. 4. The appellant had filed Shipping Bill No. 261988 dated 11.5.2020 supposedly on behalf of the exporter M/s Ala Foodstuff Pvt. Limited, Amritsar (IEC No. 1207001406) to export 481,800 metres of packing materials for pouch. No drawback was claimed on the shipping bill. The Directorate of Revenue Intelligence had received information that prohibited goods namely fabric for mask was being exported to China in the consignment, mis-d....
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.... Departmental Representative and have also considered their submissions. We have also gone through the appeal memorandum. 8. The arguments of the learned Counsel were as follows: (a) There was no emergency or needed action requiring suspension of license under Regulation 16(1) and its confirmation under Regulation 16 which reads as under : "16. Suspension of license.- (1) Notwithstanding anything contained in regulation 14, the Principal Commissioner or Commissioner of Customs may, in appropriate cases where immediate action is necessary, suspend the license of a Customs Broker where an enquiry against such Customs Broker is pending or contemplated: Provided that where the Principal Commissioner or Commissioner of Customs may deem fit for reasons to be recorded in writing, he may suspend the license for a specified number of Customs Stations. (2) Where a license is suspended under sub-regulation (1), the Principal Commissioner of Customs or Commissioner of Customs, as the case may be, shall, within fifteen days from the date of such suspension, give an opportunity of hearing to the Customs Broker whose license is suspended and may pas....
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....vice Vs. Collector of Customs, Delhi - 1999 (110) ELT 696 (Tribunal). (e) The Customs Broker fully cooperated with the investigation and at no stage had the authorities apprehended any role played by the customs broker; (f) The appellant has clear record for 15 years and hence no motive can be attributed to the appellant. 9. In view of above, the learned Counsel for the appellant prays that the suspension order may be set aside and the Customs Broker may be allowed to operate and any other relief may be provided to them. 10. On being specifically asked about the current status of proceedings under Regulation 14 for cancellation of license or imposition of the penalty, learned Counsel fairly submits that the same has been initiated by the Commissionerate and is in process. 11. Learned Departmental Representative opposes the appeal. On the first ground that there was almost a gap of six months between the SIIB informing the Commissioner about incident and actual suspension of license, learned Departmental Representative points out that merely because an information has been received that there is a suspicion of alleged irregularity in export, the department....
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.... notice of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be; (e) exercise due diligence to ascertain the correctness of any information which he imparts to a client with reference to any work related to clearance of cargo or baggage; (f) not withhold information contained in any order, instruction or public notice relating to clearance of cargo or baggage issued by the Customs authorities, as the case may be, from a client who is entitled to such information; (g) promptly pay over to the Government, when due, sums received for payment of any duty, tax or other debt or obligations owing to the Government and promptly account to his client for funds received for him from the Government or received from him in excess of Governmental or other charges payable in respect of cargo or baggage on behalf of the client; (h) not procure or attempt to procure directly or indirectly, information from the Government records or other Government sources of any kind to which access is not granted by the proper officer; (i) not attempt to influence the conduct of any official of the Customs Station in any matter p....
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....ing revocation of license it can be suspended under Regulation 16(1) and the suspension can be confirmed under Regulation 16(2), which is precisely what was done in this case. He relies on the following case laws : (a) Orient Clearing & Forwarding Agency - [2001 (136) ELT 3 (Cal.)]; (b) Sabin Logistics Pvt. Ltd. [2018 (362) ELT 226 (Mad.)]; (c) Jasjeet Singh Marwaha - [2009 (239) ELT 407 (Del.)]; (d) Asian Freight - [2020 (373) ELT 323 (Cal.)]; (e) Shree Venkatesh Shipping Services P. Ltd. - [2010 (261) ELT 8803 (Tri.-Mumbai. 13. We note that Regulation 10 of CBLR, 2018 places various obligations upon the Customs Broker which, if not complied with, can attract revocation of license and/or imposition of penalty under Regulation 14. This is not an issue to be decided at this stage, that as the matter is in process sub-judice, before the lower authorities. Pending decision on the action under Regulation 14, the Commissioner by the impugned order has suspended the license of the Customs Broker under Regulation 16. It is the case of the appellant that this suspension can be done only when immediate action is required. If no action was take....
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....ssary. We find that Regulation 16(1) of CBLR, 2018 empowers the Commissioner of Customs, to, in appropriate cases, where "immediate action is necessary", suspend the license of the Customs Broker. Having suspended, Regulation 16(2) provides for confirmation after giving an opportunity of hearing. Evidently, Regulation 16(2) does not talk about immediate action because the action would have already been taken under Regulation 16(1). Para 37 of the impugned order records that "immediate action was felt necessary" and license was suspended under 16(1). It reads as follows: "37.....Therefore, keeping in view of the above facts mentioned in the SCN No. 32/KRM/ADC/ACE/2020 dated 22.12.2020 issued by Additional Commissioner of Customs, Air Cargo Exports under letter C. No. VIII(10)ACE/SIIB/Ala/04/2020-21/7850-59 dated 22.12.2020, immediate action was felt and to prevent further misuse of Customs Broker License No. R-05/DEL/CUS/2008 valid up to 28.08.2027 of M/s Freight Logistics (PAN AABFF264IR), under Sub-Regulation (1) of Regulation 16 of the Customs Broker Licensing Regulation 2018, Customs Broker License No. R-05/DEL/CUS/2008 valid up to 28.08.2027 of M/s Freight Logistics (P....