Customs Broker Licence - Appealing to Tribunal, a misconduct warranting revocation of licence?
SOME interesting facts:
On 20.12.2013, the Commissioner of Customs passed an order for continued suspension of a Customs Broker for not submitting a security of Rs. 5 lakhs as required under the new regulations. In the preamble to his order, the Commissioner mentioned that the Customs Broker, if aggrieved can appeal to the Tribunal and that is exactly what the broker did.
The Tribunal in its order dated 10.03.2014, directed the broker to comply with the directions of the Commissioner, which he did.
In the meanwhile, on 08.01.2014, a Show Cause Notice was issued to the broker requiring him to show-cause as to why his license should not be revoked and security furnished by him should not be forfeited and why a penalty should not be imposed upon him.
This show-cause notice culminated into an order passed by the Commissioner on 13.05.2014, revoking the customs broker license, forfeiting security in full and further imposing a penalty of Rs.50,000/- upon him in terms of Regulation 18 of the CBLR 2013.
The broker is before the Tribunal again. The Tribunal found that the reasoning of the adjudicating authority for refusing to renew his license and revoking the same is that the appellant did not honour the directions of the Commissioner for furnishing the security of Rs.5 lakhs in terms of the new Regulations and as such the said action on the part of the assessee amounts to misconduct thus making him misfit for carrying out the work of Customs Broker .
The Tribunal further observed, "The question is as to whether such conduct of the appellant in not accepting the Revenue's direction and challenging the same before the higher appellate forum can be considered to be a misconduct on his part as Custom Broker License holder so as to revoke his license. The answer to such a question, by any reasonable prudent man would be emphatic "NO". Appellant's license which has already been renewed by Commissioner himself till 2021 cannot be revoked on this sole ground that instead of accepting the directions of the Commissioner, the appellant has chosen to file an appeal before the Tribunal. As such, we find no merits in the impugned order of the Commissioner revoking the appellant's license and imposing penalty on him. The order is set aside and the Revenue is directed to immediately restore the appellant's license as he has already fulfilled the conditions imposed upon him by the Revenue and as upheld by the Tribunal."
We bring you the CESTAT order today. Please see Breaking News/2015-TIOL-2353-CESTAT-BANG