2013 (9) TMI 1016 - HC - Customs

Suspension of Customs House Agents (CHA) - prolonged inquiry - Regulation 20 of Custom House Agents Licensing Regulations, 2004 (CHALR) - non submission of report within stipulated period - Held that - We are conscious of the fact that such long delay in completing the proceedings causes prejudice to the appellant as its licence to do business is under suspension pending enquiry under Regulation 22 of the CHALR. Regulation 22 of CHALR contemplates that entire enquiry from the date of issuing of notice under clause (1) of Regulation 22 of CHALR till the date of the decision of the Commissioner of Customs under clause (7) of Regulation 22 of CHALR is required to be completed within 180 days i.e. maximum six months. In the facts of the present case, we are informed that enquiry has been going on for much longer. Therefore, respondent is required to complete the enquiry at the earliest. The learned Counsel for the appellant assures us that it will co-operate with the Customs Authority for completing the enquiry pending before the Enquiry Officer and that, if required, will also submit its representation on the Enquiry Officer s report to the Commissioner of Customs i.e. the Licensing Authority within one week of its receipt.

Summary

Issues:
Appeal against CESTAT order suspending CHA license under CHALR; Delay in enquiry proceedings under CHALR; Compliance with Circular No. 9/2010-Customs; Completion of proceedings before Enquiry Officer and Licensing Authority under CHALR; Timeframe for completing enquiry under CHALR; Enforcement of Regulation 22 of CHALR; Interim order for completion of process by Commissioner of Customs.

Analysis:
The appeal was filed against the CESTAT order suspending the appellant's license as a Customs House Agent (CHA) under Regulation 20 of Custom House Agents Licensing Regulations, 2004 (CHALR). The appellant sought either a hearing of the appeal or an interim stay of the order to continue business as a CHA due to delays in the enquiry proceedings under CHALR.

The appellant's counsel argued that the enquiry proceedings under Regulation 22 of CHALR involved seven charges, with hearings held for four charges and pending for three charges. They contended that a stay of the impugned order should be granted until the enquiry is concluded.

Reference was made to Circular No. 9/2010-Customs, stating that the Licensing Authority must decide to suspend a CHA license within fifteen days of receiving the Investigating Authority's report, submitted within thirty days of detecting an offense. The appellant claimed that the delay in the investigation and suspension order violated the Circular, rendering the order under Regulation 20 of CHALR unlawful.

The Court acknowledged the delay in completing the proceedings, causing prejudice to the appellant, whose business license remained suspended pending the enquiry under CHALR. Emphasizing the importance of expeditious completion, the Court directed both parties to expedite the proceedings before the Enquiry Officer and the Licensing Authority.

Regulation 22 of CHALR stipulates a maximum timeframe of 180 days for completing the entire enquiry process, from issuing the notice to the Commissioner of Customs' decision. The Court noted that the authorities had exceeded the prescribed time for completing the enquiry, urging the respondent to conclude the process promptly.

In an interim order, the Court directed the Commissioner of Customs to ensure completion of the entire process under Regulation 22 of CHALR, including issuing an order, by a specified date. The order was passed without prejudice to the parties' rights in the main appeal, with the case scheduled for further hearing on a later date.