Order Date: 24 August 2022

Facts-

• The Appellants, M/s Yash Logisys are custom brokers. On the basis of an intelligence received that one Shri Hardik Shah was importing consignment of Whey Proteins and was undervaluing the same, various premises were searched and in that context the statement of proprietor of appellant were recorded.
• The license of the custom broker was suspended and personal hearing was granted and it was alleged that the custom broker was aware of manipulation. 
• The appellants submitted that the proceedings are in violation of the Provisions of Customs Act, 1962 and the principles of natural justice; Commissioner did not examine the persons even when the statements made were retracted; Commissioner did not allow cross-examination of co-accused; copy of the offence report was not given; Commissioner had failed to adhere to mandatory time schedule prescribed for every stage of proceedings, under CBLR, 2018 and CBEC's Circular.
• Hence, the appellant filed this appeal.

Issue-

• Whether the suspension of the appellant-custom broker’s license is sustainable?

Order-

• The Tribunal observed that the appellant is accused of having knowledge of the undervaluation committed by the importer and that he has not kept the Department informed and thus they have violated provisions of Regulations 10(d), 10(e) and 10(m) of CBLR, 2018. 
• However, order of suspension was issued after about a year of recording of the statement of the accused. Action like suspension needs to be immediate and any delay, in this regard, would give an impression that the action was not warranted. 
• Moreover, the suspension of license of a custom broker, placed on a similar footing, alleged to have been involved in the same offence committed by the importer at Mundra, has been revoked. Justice demands that when the allegations are common, action taken should be similar. 
• The Tribunal further observed that principles governing the implementation of Customs Act may not be equated to the provisions under CBLR, 2018 although CBLR, 2018 flows from the Customs Act, 1962. High Courts have interpreted the provisions regarding the issuance of show cause notice within 90 days of the receipt of offence report, differentially while some High Courts have held that the timeline is mandatory. 
• The Tribunal held that it is the case of the appellant that copy of the offence report/information against the appellant was not provided; suspension was ordered after lapse of around one year; while the custom broker at Kandla was allowed, by revoking the suspension, to continue his business, the appellant has been met to suffer. 
• Hence, the impugned order is set aside and the suspension of the appellant-custom broker’s license is revoked.