TaxTMI 
TaxTMI 
2026 (9) TMI 105
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....referred to as 'Commissioner'], remanded the matter back to the Commissioner for fresh adjudication in order to grant opportunity to the Appellant to cross-examine the witnesses. 2. In order to comprehend the issues involved in the present case, the relevant facts in brief are required to be noticed. 3. The Appellant, M/s Vogue Logistics Pvt. Ltd., is a Customs Broker holding Customs Broker Licence issued under the Customs Brokers Licensing Regulations, 2018 [hereinafter referred to as 'CBLR']. On 14.12.2021, an investigation was initiated against M/s Disha Enterprises in relation to an alleged attempt to export diamonds concealed in plastic hot fix, pursuant to which the diamonds, stated to be worth approximately Rs.1.56 crores, were seized on 16.12.2021 under Section 110 of the Act. 4. During the course of investigation, statements of persons connected with the Appellant were recorded under Section 108 of the Act. The Appellant's Directors, Shri Moti Khanna and Shri Samir Jha, as well as Shri Pankaj Kumar, an H-Card holder of the Appellant, stated that the Appellant had no knowledge of the alleged concealment of diamonds and that the export documents had been filed on th....
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....submits that none of the witnesses whose statements were relied upon were examined by the Inquiry Officer, thereby depriving the Appellant of an opportunity to cross-examine them. He submits that remanding the matter for examination of the witnesses would amount to permitting the Respondents to fill the lacuna in the proceedings, which is impermissible in law. It is further submitted that the revocation proceedings stand vitiated on account of non-compliance with Regulation 17 of the CBLR. 12. Learned SSC representing the Respondent, on the other hand, has supported the Impugned Order and submitted that no interference is warranted by this Court. He submits that the matter has rightly been remanded for fresh adjudication in accordance with law. 13. This Court has considered the submissions advanced by learned senior counsel representing the Appellant and learned SSC representing the Respondent. 14. Section 108 of the Act only enables a Gazetted Officer of Customs to summon any person whose attendance is considered necessary for giving evidence or producing any document or other thing in an inquiry under the Act. Section 138B of the Act, on the other hand, deals with the re....
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....lation to any proceeding under this Act, other than a proceeding before a court, as they apply in relation to a proceeding before a court.] 15. For regulating Customs Brokers' Licences, the CBLR have been notified. Regulation 17 of the CBLR reads as under: "17. Procedure for revoking license or imposing penalty.- (1) The Principal Commissioner or 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 Assistant Commissioner of Customs. (2) The Commissioner of Customs may, on receipt of the written statement from the Customs Broker, or where no such statement has been received within the time-limit specified in the notice referred to in sub-regulation (1),....
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....mmissioner of Customs or Commissioner of Customs, as the case may be. (8) Where in the proceedings under these regulations, the Principal Commissioner of Customs or Commissioner of Customs, as the case may be, comes to a conclusion that the F card holder is guilty of grounds specified in regulation 14 or incapacitated in the meaning of the said regulation, then the Principal Commissioner of Customs or Commissioner of Customs may pass an order imposing penalty as provided in regulation 18: Provided that where an order is passed against an F card holder, he shall surrender the photo identity card issued in Form F forthwith to the Deputy Commissioner of Customs or Assistant Commissioner of Customs. (9) Where in an offence report, charges have been framed against an F card holder in addition to the Customs Broker who has been issued a license under regulation 7, then procedure prescribed in regulations 16 and 17 shall be followed mutatis mutandis in so far as the prescribed procedure is relevant to the F card holder: Provided that where any action is contemplated against a G card holder alone under these regulations, then instead of authority referre....
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....cutions. The present proceedings are not proceedings for prosecution of the Appellant for an offence. 19. At the same time, Regulation 17(3) of the CBLR expressly requires the Inquiry Officer to take such oral evidence as may be relevant or material to the inquiry, while Regulation 17(4) confers upon the Customs Broker the right to cross-examine the persons examined in support of the grounds forming the basis of the proceedings. Consequently, where oral evidence is sought to be relied upon in the inquiry, the Customs Broker must be afforded the corresponding opportunity of cross-examination. The procedure contemplated under Regulation 17 bears some resemblance to a domestic disciplinary inquiry. However, this does not mean that all principles governing a domestic inquiry between an employer and an employee are to be imported into proceedings under the CBLR. The requirement of affording an opportunity of cross-examination flows specifically from Regulation 17(4), which could not have been overlooked by the Commissioner. 20. The further contention that the remand directed by the CESTAT amounts to permitting the Department to fill a lacuna also cannot be accepted. The remand is ....