2010 (8) TMI 211 - HC - Customs

Revocation of licence - notice to show cause modifying the show cause notice - respondents were directed to conclude the proceedings preferably within 60 days - Held that - respondents was not even instructed to pray for extension of time for conclusion of the proceedings - staying the order - suspending the licence of the petitioner

Summary

Issues:
1. Petitioner's prayer for cancellation of suspension order and permission to continue business as Customs House Agent.
2. Delay in concluding suspension proceedings and issuance of modified show cause notice.
3. Legality of the actions taken by the Commissioner of Customs.
4. Granting of interim relief to the petitioner.

Analysis:
1. The petitioner sought a direction to cancel the suspension order dated 13th January, 2010, and allow continuation of business as a Customs House Agent under the license granted by the Kolkata Customs Commissionerate. The High Court directed the Commissioner of Customs to conclude the proceedings within 60 days, emphasizing the peremptory nature of the directions.

2. Despite the petitioner submitting a timely reply to the show cause notice, the suspension proceedings were not concluded, leading to continued suffering for the petitioner. The Commissioner of Customs issued a notice modifying the show cause notice, shifting the jurisdiction to New Delhi. The Court found this action inappropriate, as the Commissioner should have sought leave before issuing the notice, and the proceedings were not concluded within the stipulated time frame.

3. The Customs Authorities cited a circular extending the time for completion of suspension proceedings. However, the Court noted that no interim order was passed, expecting the proceedings to be completed within the specified time frame. The Court found the actions of the Commissioner to be lacking propriety, as no extension was sought for concluding the proceedings, leading to the issuance of the suspension order being stayed.

4. In light of the delay in concluding the proceedings and the petitioner's suffering due to the suspension order, the Court granted an order of injunction restraining the Customs Authorities from further action based on the suspension order. The petitioner was permitted to continue business as a Customs House Agent in Kolkata until the proceedings were concluded or further orders were issued by the Court. This interim relief was granted without prejudice to the rights and contentions of the parties, with instructions for all concerned parties to act accordingly based on the Court's decision.