" IN THE CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL \n EASTERN ZONAL BENCH: KOLKATA \n \n \n Customs Appeal No. 75243/2018 \n(Arising out of Order-in-Original No.KOL/CUS/AIRPORT/ADMN/20/2017 \ndated-18/10/2017, passed by the Commissioner of Customs (Airport & \nAdministration), Kolkata) \n \n1) M/s. Sadguru Forwarders (P) Ltd. \n \n \n \n \n \n \n \n \n \nApplicant (s)/Appellant (s) \nVs. \nCommr. of Customs (Airport & Admn.), \nKolkata \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nRespondent (s) \n \nAppearance: \nSri Arijit Chakraborty, Advocate \n \n \n \n \n \n \n \n \n \n \n \n for the Appellant (s) \nSri A. K. Singh, A.C. (A.R.) \n \n \n \n \n \n \n for the Respondent (s) \n \nCORAM: \nSHRI P.K. CHOUDHARY, HON’BLE JUDICIAL MEMBER \nSHRI P. VENKATA SUBBA RAO, HON’BLE TECHNICAL MEMBER \n \n \nDate of Hearing/Decision :- 27.06.2019 \n \nORDER NO: F.O./75781/2019 \n \nPER SHRI P. VENKATA SUBBA RAO \n \n \nThis \nappeal \nis \nfiled \nagainst \nOrder-in-Original \nNo. \nKOL/CUS/AIRPORT/ADMN/20/2017 dated-18/10/2017, passed by the \nCommissioner of Customs (Airport & Administration), Kolkata. \n \n \n\nCustoms Appeal No. 75243/2018 \n2 \n \n2. \nThe facts of the case are that the appellant herein is a Customs Broker \nhaving license No. S-116 issued by the Commissioner of Customs, Kolkata \nunder Regulation 7 (1) of CBLR, 2013. In the course of an investigation by \nthe Directorate of Intelligence, it was suspected that the Customs Broker is \nactively connected with the fraudulent import of certain consignments. \nAccordingly, their CBLR licence was suspended under Regulation 19 and \nthereafter the suspension was confirmed vide the impugned order under \nRegulation 19(2) of CBLR, 2013. \n \n3. \nLd. Counsel for the appellant submits that the order confirming the \nsuspension of the licence was passed on 18th October, 2017 i.e., more than \none year ago and so far no action has been taken either for revocation of \ntheir licence or imposing penalty under Regulation 20. He draws the \nattention of the Bench of Regulation 19 of CBLR, 2013 which reads as: \n \n“Regulation 19. Suspension of licence- (1) Notwithstanding anything \ncontained \nin \nregulation \n18, \nthe \n[Principal \nCommissioner \nor \nCommissioner] \nof \nCustoms \nmay, \nin \nappropriate \ncases \nwhere \nimmediate action is necessary, suspend the licence of a Customs \nBroker where an enquiry against such [broker] is pending or \ncontemplated. \n(2) Where a licence is suspended under sub-regulation (1), the \n[Principal Commissioner or Commissioner] of Customs shall, within \nfifteen days from the date of such suspension, give an opportunity of \nhearing to the Customs Broker whose licence is suspended and may \npass such order as he dreams fit either revoking the suspension or \ncontinuing it, as the case may be, within fifteen days from the date of \nhearing granted to the Customs Broker: \nProvided that in case the [Principal Commissioner of Customs \nor Commissioner of Customs, as the case may be] passes an \norder for continuing the suspension, the further procedure \nthereafter shall be as provided in regulation 20.” \n \nThe procedure for revocation of the licence for imposing penalty under \nRegulation 20 is as follows : \n \n“ Regulation 20. Procedure for revoking licence or imposing penalty- \n(1) The [Principal Commissioner or Commissioner] of Customs shall \nissue a notice in writing to the Customs broker within a period of \nninety days from the date of receipt of an offence report, stating the \ngrounds on which it is proposed to revoke the licence or impose \npenalty requiring the said Customs Broker to submit within thirty days \nto the Deputy Commissioner of Customs or Assistant Commissioner of \n \n \n\nCustoms Appeal No. 75243/2018 \n3 \n \nCustoms nominated by him, a written statement of defence and also to \nspecify in the said statement whether the Customs broker desires to \nbe heard in person by the said Deputy Commissioner of Customs or \nAssistant Commissioner of Customs. \n(2) The Commissioner of Customs may, on receipt of the written \nstatement from the Customs Broker, or where no such statement has \nbeen received within the time-limit specified in the notice referred to in \nsub-regulation (1), direct the Deputy Commissioner of Customs or \nAssistant Commissioner of Customs, as the case may be , to inquire \ninto the grounds which are not admitted by the Customs broker. \n(3) The Deputy Commissioner of Customs or Assistant Commissioner \nof Customs, as the case may be, shall, in the course of inquiry, \nconsider such documentary evidence and take such oral evidence as \nmay be relevant or material to the inquiry in regard to the grounds \nforming the basis of the proceedings, and he may also put any \nquestion to any person tendering evidence for or against the Customs \nbroker4, for the purpose of ascertaining the correct position. \n(4) The Customs Broker shall be entitled to cross-examine the persons \nexamined in support of the grounds forming the basis of the \nproceedings, and where the Deputy Commissioner of Customs or \nAssistant Commissioner of Customs declines to examine any person on \nthe grounds that his evidence is not relevant or material, he shall \nrecord his reasons in writing to so doing. \n(5) At the conclusion of the inquiry, the Deputy Commissioner of \nCustoms or Assistant Commissioner of Customs, as the case may be, \nshall prepare a report of the inquiry and after recording his findings \nthereon submit the report within a period of ninety days from the date \nof issue of a notice under sub-regulation (1) \n(6) The [Principal Commissioner or Commissioner] of Customs shall \nfurnish to the Customs Broker a copy of the report of the Deputy \nCommissioner of Customs or Assistant Commissioner of Customs, as \nthe case may be , and shall require the Customs Broker to submit, \nwithin the specified period not being less than thirty days, any \nrepresentation that he may wish to make against the said report. \n(7) The [Principal Commissioner or Commissioner] of Customs \nshall, after considering the report of the inquiry and the \nrepresentation thereon, if any, made by the Customs Broker, \npass such orders as he deems fit either revoking the \nsuspension of the license or revoking the licence of the \nCustoms Broker or imposing penalty not exceeding the amount \nmentioned in regulation 22 within ninety days from the date of \nsubmission of the report by the Deputy Commissioner of \nCustoms or Assistant Commissioner of Customs, under sub-\nregulation (5): \nProvided that no order for revoking the licence shall be passed \nunless an opportunity is given to the Customs Broker to be \nheard in person by the [Principal Commissioner of Customs or \nCommissioner of Customs, as the case may be] \nHe submits that within a period of 90 days from the date of receipt of the \n \n \n\nCustoms Appeal No. 75243/2018 \n4 \n \noffence report, the Principal Commissioner or Commissioner of Customs was \nrequired to issue a notice proposing to revoke the license or impose penalty \nupon the CBLR,2013. However, no action has been taken pursuant to the \noffence report. Therefore, they have been unfairly deprived of their \nlegitimate right of conducting business by suspending their licence and \ntaking no action whatsoever in pursuance of the alleged offences committed \nby them. \n \n4. \nLd. Departmental Representative submits a letter dated 26/6/2019 \nfrom the Assistant Commissioner of Customs, Kolkata in which it was held \nthat proceedings for revocation of license in terms of Regulation 20 of CBLR, \n2013 have been initiated and a personal hearing was granted on 14/2/2019 \nto the Customs Broker whose representative appeared before the \nCommissioner and requested that the matter may be adjourned till the \nCESTAT passes an order in the present case. \n \n5. \nCountering this , the Ld. Counsel submits a copy of the notice issued \nto them by the Commissioner which is titled is “Notice for personal hearing \nin the matter of confirmation of suspension of Customs Broker Licence vide \norder-in-original dated-18/10/2017 to M/s. Sadguru Forwarders (P) Ltd.” \nThe Customs Broker was directed to appear on 14/2/2019 at 12.30 hrs. for \nhearing alongwith their submissions. Ld. Counsel submits that this notice \nitself is defective because confirmation of suspension had already been done \nin 2017 and nothing more is required in terms of Regulation 19 of CBLR, \n2013. No Show Cause Notice has been issued proposing either revocation of \nthe licence or imposition of the penalty upon them by the Commissioner and \ntherefore, no proceedings were pending. He further submits that no inquiry \nofficer has also been appointed. \n \n6. \nHaving considered both sides of the matter and the submissions made, \nwe find that the continuous suspension of the licence of the Customs Broker \nwithout either conducting an inquiry or issuing a notice for revocation of \nlicence or imposition of penalty is bad in law and needs to the set aside. We, \ntherefore, find that the appellants have made out a case for seeking the \nrevocation of the suspension of the Customs licence. Without passing any \n \n \n \n\nCustoms Appeal No. 75243/2018 \n5 \n \n remarks on the merits of the case of revocation of license or imposition of \npenalty and giving Commissioner full liberty to proceed in the matter as per \nthe regulations, the order of the suspension of the Customs Broker Licence \nis revoked. \n \n7. \nThe appeal is allowed under suspension of the Customs Broker License \nof the appellant while the impugned order is set aside with consequential \nrelief. \n \n \n(Dictated and pronounced in the open Court) \n \n Sd/- \n \n \n \n \n \n \n \nSd/- \n (P.K. Choudhary) (P. Venkata Subba Rao) \n Member (Judicial) \n Member (Technical) \n \n \n \n \n \n \n \n \n \n \n \n \n \nk.b/- \n \n \n"