Not Allowing Customs Broker An Opportunity To Cross-Examine Serious Prejudice: High Court Quashes Order Revoking Customs Broker’s License

In a significant judgment, the High Court of Delhi has set aside the Order-in-Original by the Commissioner of Customs, which revoked the license of a Customs Broker, M/s Naman Gupta & Associates. The court’s decision, pronounced on January 30, 2024, underlines the criticality of adhering to the principles of natural justice and the procedural rights of parties in such cases.

Justice Ravinder Dudeja, in the judgment, strongly emphasized the necessity of allowing cross-examination in matters where witness statements form the crux of the proceedings. “Not allowing the Customs broker an opportunity to cross-examine the persons examined in support of the grounds forming the basis of these proceedings has resulted in serious prejudice to the petitioner,” the Court observed (Para 18).

The petitioner challenged the revocation of their license and the imposition of penalties, arguing that the order was violative of fundamental principles of natural justice. Specifically, the petitioner was not granted the right to cross-examine the witnesses whose statements were relied upon by the Inquiry Officer (Para 3).

In its detailed analysis, the Court scrutinized the procedures followed by the Inquiry Officer and the Commissioner of Customs, noting significant procedural lapses. The Court found that the Inquiry Officer assigned no reasons for denying the right of cross-examination, a clear departure from the mandates of regulation 17 (4) of the Customs Broker Licensing Regulations (CBLR), 2018 (Para 17-18).

The judgment also touched upon the role and responsibilities of a Customs Broker, highlighting the legal position as enunciated in previous judgments. The Court observed, “As a Customs Broker, the petitioner cannot be held liable because exporters were not traceable, after the issuance of ‘Let Export Orders’ and export of the goods out of the country” (Para 20).

Ultimately, the Court allowed the writ petition, quashing the impugned order, and reinstating the petitioner’s Customs Broker License. This decision marks a significant precedent in the realm of customs law and underscores the judiciary’s role in ensuring fairness and adherence to procedural norms in administrative actions.

 Date of Decision: 30th January 2024

NAMAN GUPTA VS COMMISSIONER OF CUSTOMS, AIRPORT AND GENERAL