Top Stories Fraudulently Permitting Third party to use Customs Broker Licence in Exchange of Monthly Remuneration: Delhi HC upholds Suspension of CBL [Read Order] The Court held that the appellant having admitted permitting the use of his licence by third party in exchange for monthly remuneration, the punishment of cancellation of licence is not disproportionate By Yogitha S. Yogesh – On March 18, 2024 8:02 pm – 2 mins read The Delhi High Court upheld the suspension of the Customs Broker Licence ( CBL ) as the Customs Broker in exchange for monthly remuneration fraudulently permitted the third party to use CBL. The Court held that the appellant having admitted permitting the use of his licence by third party in exchange for monthly remuneration, the punishment of cancellation of licence is not disproportionate. Sriaanshu Logistics, the Appellant challenged the order passed by the Customs Excise Service Tax Appellate Tribunal [“the tribunal”], whereby the appeal filed by the appellant impugning the Order-in-Original dated 04.12.2017 has been dismissed. The Appellant was a custom broker and possessed a Custom Broker Licence. As per the appellant, he functioned as a customs broker since the year 2010. A suspension order was issued suspending the licence which was subsequently confirmed on 27.04.2017.

The suspension was later converted into a revocation of licence by order dated 04.12.2017, the Order-in-Original, which became the subject matter of appeal before the Tribunal. The appellant had sub-let the licence to one Mr Narender Narula and one Mr Rupan Barua on a commission basis for a monthly consideration of Rs. 50,000/- per month. The appellant also provided his login ID and password to them and allowed them to use the digital signature of the G Card holder for uploading data. The custom broker license was misused and fraudulent imports were sought to be made. In one such instance, silver jewellery along with PCB for DTH and mobile phones and accessories etc. were misdeclared and sought to be imported. During the investigation, the appellant admitted to the factum of permitting the use of his custom broker licence to Mr Narender Narula and Mr Rupan Barua against receipt of Rs. 50,000/-  per month and also permitted the G-Card to be used for such transactions.

T It was found that the appellant further, in his subsequent statement, also admitted that the said broker licence was sub-let. He pointed out six monthly transactions of Rs. 50,000/- each received by him for permitting Mr Narender Narula and Mr Rupan Barua to use his custom broker licence as also the G-Card. A division bench comprising Justice Sanjeev Sachdeva and Justice Ravinder Dudeja observed that a Customs Broker occupies a very important position in the customs house. A lot of trust is kept in the customs broker by the importers, exporters as well as by the Government agencies. To ensure appropriate discharge of such trust, the Customs Broker Licensing Regulations have been framed and there has to be strict compliance thereof.  Any contravention of such obligation would invite sanction as provided in the Regulations.  The Appellant was represented by Ms Reena Rawat and Ms Jyotika Sharma. The Respondent was represented by Mr. Harpreet Singh, SSC with Ms. Suhani Mathur and Mr. Jatin Kumar Gaur.  the subject appeal. To Read the full text of the Order CLICK HERE