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2009 (2) TMI 738 - HC - Customs

Issues:
Challenge to revalidation of license on a piecemeal basis and failure to renew it for a period of ten years under Customs House Agents Licensing Regulations, 2004.

Analysis:
The petitioner, a registered partnership firm acting as a Customs House Agent, challenged the respondent's action of revalidating the license on a piecemeal basis and not renewing it for a period of ten years as per Regulation 11 of the Customs House Agents Licensing Regulations, 2004. The respondent had imposed a penalty on the petitioner, which was later set aside by the Customs, Excise and Service Tax Appellate Tribunal. The respondent justified the piecemeal revalidation of the license due to pending adjudication proceedings. The petitioner contended that according to the Regulations and Customs authorities' Circulars, license renewal should be for a full ten-year period.

The main issue revolved around whether the authorities had the power to revalidate the license of an agent on a piecemeal basis. Regulation 11 of the 2004 Regulations stipulated that a license granted under Regulation 9 is valid for ten years, and renewal can be granted for a further ten years subject to satisfactory performance by the licensee. The Court held that the license must be renewed for a full ten-year period and not on a piecemeal basis. Despite pending proceedings, authorities cannot renew the license partially. The petitioner's application for renewal was granted on a piecemeal basis, which was deemed contrary to the Regulations, leading to the revalidation by the Commissioner of Customs being set aside and quashed. The Customs Department was directed to renew the license for a full ten-year period in compliance with Regulation 11(2) within a fortnight.

In conclusion, the writ petition was allowed, and no costs were awarded. All parties were directed to act on the operative portion of the order, ensuring compliance with the renewal of the license for a period of ten years.

 

 

 

 

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