TaxTMI 
TaxTMI 
2021 (7) TMI 378
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....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-declaring it as packing material and passed this....
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.... 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 pass such order as he deems fit either revoking the suspension or continuing it, as the case ....
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....e 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 has not jumped to any conclusion and suspended the appellant's license. Information is received in various forms on various issues on a daily basis by the Customs officers each of which does not necessarily re....
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....elated 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 pending before such official or his subordinates by the use of threat, false accusation, duress or the offer of any special inducement or promise of advantage or by the bestowing of any gift or favour or other thing of value; (j) not refuse access to, conceal, remove or d....
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....LT 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 taken for six months from the date of the alleged commission of offence, no case is made out for taking immediate action. Therefore, the suspension needs to be set aside. It is the case of the Revenue that even before suspending the license, the Customs Officers have to investigate the alleged offence and the role, if any, played by the Customs Broker. After completion ....