The Banglore Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) quashed the cancellation of Customs Broker’s License as examination and inquiry are still pending.
The appellant, M/s Mercantile & Marine Services is a Customs broker and was issued a license. A baggage declaration was filed by Mr. Althaf Moosan Mukri and on the basis of intelligence, DRI searched the baggage and recovered 14,763.3gms of Gold. Statement of Sh. Biju V. Joy, G-Card Holder of the appellant was recorded. The said G-Card holder accepted that he invested Rs.35 lakhs in the seized gold. On the basis of the offence report No.17/2021 received from DRI, the appellant was suspended.
The appellants submitted that the impugned order issued alleging violation of Regulation 10(d) and 10(e) of CBLR, 2018 is not sustainable; the impugned order takes a harsh and coercive action like suspension of license of running a business and consequently, a large number of people and their livelihood is affected.
On the other hand, the Department submits that smuggling of gold is a serious offense and requires the most strict action possible.
The Coram of Judicial Member, C.S.Mohanty, and Technical Member, P.Anjani Kumar noted that appellants themselves have not been clearly established so as to necessitate the suspension of Customs Broker License. The Department submits that the matter is still under examination and Enquiry by the Department.
The tribunal found that under the circumstances, the suspension of the license of the appellant is not warranted. Moreover, in the instant case, it has been reported that the SCN under CBLR has been issued. On completion of the enquiries and examination, the Department is free to take suitable action. In view of the above, we are of the considered opinion that the suspension of the license is not required. Therefore, the said suspension requires to be set aside and we do so. At the same time, we make it clear that this order should, in no way, come in the way of the action, as deemed fit, that may be taken by the Department on completion of the proceedings initiated against the appellant.
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