2011 (3) TMI 1608 - HC - Customs

Suspension of CHA licence - time limitation - Held that - The instructions issued by the Central Board of Excise and Customs are binding on the Department. The time stipulations in the Circular are apparently directory and not mandatory, as will be evident from the language and tenor thereof. Furthermore, the Circular does not provide for the consequences of failure to adhere to the time schedule - There can be no doubt that a Custom House Agent cannot be kept under indefinite suspension without initiating necessary proceedings. Necessary proceedings would have to be initiated forthwith and concluded with utmost expedition - applications disposed off.

Summary

Issues:
Challenge to suspension order of Custom House Agent License-holder; Compliance with Circular No.9/2010-Customs; Time limits for completion of suspension proceedings; Authority of Central Board of Excise and Customs; Consequences of failure to adhere to time schedule; Fair opportunity of hearing for Custom House Agent.

Analysis:
The writ petitioner, a Custom House Agent, challenged a suspension order dated 13 January, 2010. A Single Bench of the Court directed affidavits to be filed. Meanwhile, Circular No.9/2010-Customs was issued by the Central Board of Excise and Customs, setting time limits for completion of suspension proceedings against Custom House Agent License-holders. The Circular specified time limits at various stages of the process to expedite proceedings and ensure a fair opportunity for the Custom House Agent.

The Court noted that the Circular's time stipulations were directory, not mandatory, and did not outline consequences for non-compliance. Despite serious allegations against the Custom House Agent, the Court refrained from interfering with the suspension, emphasizing the need for authorities to conclude proceedings within a stipulated time. It was emphasized that a Custom House Agent cannot be indefinitely suspended without initiating necessary proceedings promptly and concluding them expeditiously.

The Court disposed of the writ application by directing the respondents to conclude the proceedings against the petitioner within two months from the date of the judgment. Failure to adhere to this timeline would result in the revocation or withdrawal of the suspension order. The authorities were instructed to provide the petitioner with a fair opportunity for a hearing, with the possibility of proceeding ex parte if the petitioner failed to appear despite adequate notice. A General Application related to the case was also disposed of, and all parties were required to act upon a signed copy of the order.