TaxTMI 
TaxTMI 
2025 (3) TMI 1200
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.... Mumbai, revoking the licence and forfeiting of security deposit, under regulation 14 of Customs Broker Licensing Regulations, 2018, while imposing penalty of Rs. 50,000, under regulation 18 of Customs Broker Licensing Regulations, 2018, despite the charges set out for initiation of the proceedings, viz., alleged breach of regulation 10(d), 10(e) and 10(f) of Customs Broker Licensing Regulations, 2018, having been held as 'not proved' in the enquiry proceedings. The licensing authority had, upon scrutiny of the enquiry report dated 1st February 2024, proposed revision thereof by disagreement memo of 7th March 2024 which was followed with termination of licence and other detriments. 2. The proceedings itself was one of several initiated a....
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....d on the facts unearthed by the investigation of several exporters, including M/s Doshi Impex and with complicit of the above referred Suhel Ansari, having shipped 'inferior goods' against fraudulent documents with intent to avail ineligible drawback, the failure to file the declaration detailing particulars of the supplier of goods as prescribed in circular [no. 16/2009-Customs dated 25th May 2009] and in having obtained ineligible drawback evidenced by the value at which these were cleared at destinations in which the customer of the appellant. He submitted that the licensing authority, instead of evaluating these facts in the context of mutually exclusive obligations enumerated in each of the regulations alleged to have been breached, ha....
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.... According to him, the finding of the inquiry vindicated this stand of the appellant. 6. According to him, the first of the charges, viz., advising clients to comply with statutory provisions, does not stem from any drill envisaged under the regulations or under Customs Act, 1962 and is intended to be invoked upon some aspect of the export consignment that is so glaringly evident, or so remotely out of place, as to be perceptible to an average person and, hence, inferable as consequence of no advice or ill advice. Likewise, it was his contention that the second charge, relating to ascertainment of correctness of any information imparted to a client, flows from some aspects of export declaration or process having been found to be contrary....
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.... owing to which the three regulations were breached. 8. On a perusal of the findings of the licensing authority, and which, presumably, are to have arisen from detailed elaboration in the disagreement memo, it would appear that all three charges were framed on the presumption of conspiracy to avail ineligible drawback and non-compliance with the mandate to file declarations. We find that the alleged conspiracy is mere narration of events and episodes leading to the eventual decision to proceed against the appellant, and others, under the Customs Broker Licensing Regulations, 2018. It was necessary for the licensing authority to depict the elements of this conspiracy in terms of the stipulations in Customs Act, 1962 that were breached the....
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....gations would, therefore, stem from that owed to clients and, hence, the determination of time lines with reference to 'offence report' which may originate with client. That perception of cause and effect has to be appreciated and comprehended for proper exercise of authority to punish brokers. 10. It was, therefore, necessary to demonstrate, at least circumstantially and other than merely factual ascertaining of paper work having been handled and of making the goods available for examination, that the appellant had occasion to draw the attention of the client to statutory stipulations but did not and, if done, chose not to report non-compliance thereof. Likewise, acts of omission or commission in relation to clearance of goods by export....