Order date – 22 July 2022

Facts – 

• The Appellant, M/s Star CHA Management Services LLP, was in a Limited Liability Partnership with two partners. The appellant obtained a Customs Broker License on 21.07.2014. On 20.06.2017, one of the partners Ashu Chauhan expired. 
• On 11.12.2017 a new partnership deed in terms of section 7 of the Limited Liability Act, 2008 was created. The details of reconstituted partnership deed were registered with Ministry of Corporate Affairs on 01.09.2018. 
• The appellant filed their first Bill of Entry on 06.10.2018 and on 10.10.2018 intimation was filed with Customs for addition of new partners in the Customs record.
• Proceedings were initiated against the appellant for violating the Customs Broker Licensing Regulation, 20184 as the appellant failed to follow the second proviso to Regulation 7 (2) of CBLR, 2018. 
• The Commissioner of Customs ordered for forfeiture of security deposit of Rs. 5 lakhs and a penalty of Rs. 50,000/- was imposed on the appellant.
• Aggrieved the appellant filed an appeal.

Issue – 

• Whether the order passed by commissioner is maintainable?

Order – 

• The Tribunal observed that Regulation 13 of the CBLR, 2013 clearly lies down that the change of constitution of a Customs Broker needs to be communicated within 60 days from the date of such change for the grant of license under Regulation 7.
• In the instant case, the change was made on 11.12.2014 but it was reported only on 10.10.2018 after a considerable delay. In view of above, there is a clear violation of CBLR, 2013 under which the appellant was licensed. But considering the fact that one of Appellant’s partners died and he was not in a right frame of mind, the Tribunal took a lenient view. 
• The Tribunal held that this case is not of a significant violation but only that of a delay in reporting. Moreover, the appellant did not process any document during this period. 
• Therefore, the order the forfeiture of security deposit of Rs. 5 lakhs was set aside but the penalty of Rs. 50,000/- on the Customs Broker was confirmed for this lapse.