TaxTMI 
TaxTMI 
2024 (11) TMI 805
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....xporter] under a duty drawback scheme. 3. A show cause notice dated 16.09.2020 was issued to the exporter to show cause why duty drawback should not be denied and the goods already exported should not be confiscated and penalty should not be imposed under sections 114 (iii) and 114AA of the Customs Act, 1962 [the Customs Act]. The show cause notice also called upon the appellant to show cause why penalty should not be imposed upon the appellant under sections 114(iii) and 114AA of the Customs Act. 4. The Additional Commissioner adjudicated the show cause notice by order dated 07.02.2023 and the operative part of the order is: "(I) I hereby reject the claimed Drawback to the tune of Rs. 1,90,84,449/- (Rupees One Crore Ninety Lakh Eighty Four Thousand Four Hundred Forty Nine Only) in respect of Shipping Bills (Table 4 of the Show Cause Notice) being inadmissible under Section 75 of the Customs Act, 1962 read with in terms of Rule 17 of Customs and Central Excise Duties Drawback Rules, 2017 since the export proceeds for the said goods has not been realized by or on behalf of the said Exporter within nine month time as prescribed under FEMA Act, 1999 & Foreign Exchange M....
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....is a Customs Broker having CB License No. R-008/97/DEL/CUS/2017 (PAN: AADFG5566E) valid upto 31.12.2026, issued by the Commissioner of Customs (Airport & General), New Delhi. Whereas, copy of Order-in- Original No.-06/JA/ADC/ACE/2023 dated 07.02.2023 (RUD-1) issued by Shri Jyotiraditya, Additional Commissioner of Customs, ACC-Export, Delhi, to M/s Global Links & Ors. was received in this office on 10.02.2023 wherein the matter was referred to this office for taking appropriate action against the CB." 7. Paragraph 3 of the show cause notice, which runs from page numbers 135 to 173 of the show cause notice, is a mere reproduction of the order dated 07.02.2023 passed by the Additional Commissioner. 8. After reproducing the order passed by the Additional Commissioner in paragraph 3, the show cause notice mentions the following facts in paragraphs 4, 5 and 6. "4. Whereas from the above. it appears that the CB has violated the following regulations of CBLR 2013 for the reasons narrated in preceding paras:- Regulation 11(d) of CBLR 2013: advise his client to comply with the provisions of the Act and in case of non-compliance, shall bring the matter to the ....
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....n) and 17(9) of Customs Broker Licensing Regulation 2013;" (emphasis supplied) 9. The appellant filed a reply to the said show cause notice and the Commissioner of Customs passed an order dated 30.10.2023. The operative part of the order is as follows: "In exercise of powers conferred in terms of Regulation 18 & 22 read with Regulation 20 (7) CBLR, 2013, (i) I revoke the CB Licence No. R-008/97/DEL/CUS/2017 (PAN: AADFG5566E) valid upto 31.12.2026 of M/s Global Links. (ii) I direct the CB to immediately surrender the Original CB License No. R-008/97/ DEL/CUS/2017 (PAN: AADFG5566E) valid upto 31.12.2026 along with all 'F/G/H Cards insued there under; (iii) I order for forfeiture of the whole amount of security deposit furnished by them; (iv) I impose a Penalty of Rs.50,000/- on M/s Global Links (PAN: AADFG5566E) under Regulation 22 of CBLR, 2013." (emphasis supplied) 10. It is this order dated 30.10.2023 passed by the Commissioner of Customs that has been assailed in this appeal. 11. It is pertinent to note that though the show cause notice refers to violation of sub-clauses (d), (e), (n) of Regulation 11 as also Regulat....
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....ioning of his client at the declared address by using reliable, independent, authentic documents, data or information; and (o) xxxx" 16. Regulation 17 (9) is also reproduced below: "17. Employment of persons- (9) The Customs Broker shall exercise such supervision as may be necessary to ensure the proper conduct of his employees in the transaction of business and he shall be held responsible for all acts or omissions of his employees during their employment." 17. Regulation 20(1) is reproduced below: "20. Procedure for revoking license or imposing penalty- (1) The Commissioner of Customs shall issue a notice in writing to the Customs Broker within a period of ninety days from the date of receipt of an offence report, stating the grounds on which it is proposed to revoke the license or impose penalty requiring the said Customs Broker to submit within thirty days to the Deputy Commissioner of Customs or Assistant Commissioner of Customs nominated by him, a written statement of defense and also to specify in the said statement whether the Customs Broker desires to be heard in person by the said Deputy Commissioner of Customs or Assista....
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....lied upon document no. 01. Paragraph 3 of the show cause notice is merely a reproduction of the order dated 07.02.2023 passed by the Additional Commissioner and continues from pages 135 to 173 of the appeal memo. After having reproduced the order passed by the Additional Commissioner in these many pages, the show cause notice, in paragraph 4 which has also been reproduced above, merely states that it appears that the Customs Broker violated these four Regulations and these four Regulations have been reproduced in the same paragraph. 23. It clearly transpires that the show cause notice does not give any reason as to why the said four Regulations of the 2013 Regulations had been violated. The order impugned in this appeal is, therefore, liable to be set aside for this reason alone as the show cause notice is the very foundation of an order. 24. The order that has been passed by the Commissioner of Customs can also been examined on merits. In regard to violation of Regulation 11(n) of the 2013 Regulations, the reply filed by the appellant, as contained in the order, is reproduced below: "(iii) There is no contravention of regulation 11(n) of CBLR as there no allegation ....