In Customs Appeal No. 60098 of 2023- CESTAT- CESTAT (Chandigarh) upholds revocation of license for non-compliance of Customs Brokers Licensing Regulation
Members S.S. Garg (Judicial) & P. Anjani Kumar (Technical) [11-05-2023]

Read Order: Ms. Meenu Rathore CB v. CCE and ST, Ludhiana

Chahat Varma

New Delhi, May 22, 2023: The Chandigarh bench of the Customs, Excise and Service Tax Appellate Tribunal has found the appellant, Ms Meenu Rathore, guilty of violating Regulation 10(b), 10(d), and 10(n) of the Customs Brokers Licensing Regulation, 2018 (CBLR). The Tribunal has emphasized that customs brokers are expected to act responsibly and safeguard the interests of both their clients and the Revenue.

Factual background of the case was that the appellant was involved in the customs clearance of imports and exports and she was granted a customs broker license by the Commissioner of Customs, Amritsar. The license authorized the appellant to work as a customs broker at various customs stations. The Commissioner of Customs revoked the license of the appellant under Regulation 17(1) of CBLR, citing non-compliance with the provisions of Regulation 10 and 13(12). Additionally, the Commissioner imposed a penalty of Rs. 50,000/- under Regulation 18, read with Regulation 14 and ordered the forfeiture of security under Regulation 14 of CBLR.

The bench S.S. Garg (Judicial) and P. Anjani Kumar (Technical) noted that serious allegations were made against the appellant in the show cause notice and the Commissioner in the impugned order had considered each and every submission made by the appellant and had given reasoned finding.

The bench examined the decision rendered in Swastik Cargo Agency v. Commissioner of Customs [LQ/CESTAT/2023/175], wherein it was observed that, “The CHA is supposed to safeguard the interests of both the importers and the Customs. A lot of trust is kept in CHA by the importers/ exporters as well as by the Government Agencies. To ensure appropriate discharge of such trust, the relevant regulations are framed. Regulation 14 of the CHA Licensing Regulations lists out obligations of the CHA. Any contravention of such obligations even without intent would be sufficient to invite upon the CHA the punishment listed in the Regulations….”

The bench also placed reliance on the judgment of the High Court of Madras, in Sri Kamakshi Agency Vs Commissioner of Customs, Madras [LQ/MadHC/2000/1092], wherein it has been ruled that, “The grant of licence to a person to act as Custom House Agent is to some extent to assist the department with the various procedures such as scrutinising the various documents to be presented in the course of transaction of business for entry and exit of conveyance or the import or export of the goods. In such circumstances, great confidence is reposed in a Custom House Agent. Any misuse of such position by the Custom House Agent will have far reaching consequences in the transaction of business by the Custom House officials.”

Based on the preceding discussion, the impugned order passed by the Commissioner of Ludhiana was upheld.