2013 (5) TMI 631 - AT - Customs

CHA license Revocation/suspension - Appellant submits that after the order of suspension, SCN dt. 6.12.2012 for revocation of licence was issued which was challenged before the Hon ble Madras High Court in W.P. who set aside the SCN. Hence, the impugned order of Commissioner (Appeals) is liable to be set aside. Held that - Regulation 22 (1) provides that the Commissioner of Customs shall issue a notice in writing to CHA within 90 days from the date of receipt of offence report, stating the grounds on which it is proposed to suspend or revoke the licence of CHA. It is apparent from the above judgement of the Hon ble High Court that after the impugned order, SCN dt.6.12.2012 was issued for revocation of the licence, which was set aside by the Hon ble High Court on the ground of limitation. Thus, the impugned order is set aside and appeal is allowed. Stay petition is disposed of.

Summary

Issues:
1. Suspension of CHA license under Regulation 20(2) of Custom House Licensing Regulations, 2004.
2. Challenge of show cause notice for license revocation.
3. Interpretation of High Court's order regarding stay and show cause notice.
4. Compliance with Regulation 22(1) for issuing show cause notice within 90 days.

Analysis:
1. The Appellate Tribunal considered the suspension of the CHA license under Regulation 20(2) of Custom House Licensing Regulations, 2004. The appellant challenged the show cause notice for license revocation issued after the suspension order. The High Court had set aside the show cause notice on the ground of limitation, which led the Tribunal to analyze the sustainability of the suspension order itself.

2. The Tribunal noted the provisions of Regulation 20(1) and 22(1) of CHALR, 2004, which govern the revocation and suspension of CHA licenses. Regulation 20(1) empowers the Commissioner to revoke the license, subject to Regulation 22. Regulation 22(1) mandates the issuance of a written notice within 90 days from the receipt of an offense report for suspension or revocation of the license.

3. The Tribunal referred to the High Court's judgment, emphasizing that the show cause notice for license revocation was challenged and set aside due to a limitation issue. The High Court's decision highlighted that the stay and status quo orders did not preclude the issuance of the show cause notice within the stipulated 90-day period. The Tribunal concurred with the High Court's reasoning, leading to the setting aside of the impugned show cause notice.

4. In light of the High Court's decision on the limitation issue concerning the show cause notice, the Tribunal concluded that the order under Regulation 20(2) could not be sustained once the notice under Regulation 20(1) was set aside. Therefore, the Tribunal set aside the impugned order and allowed the appeal, disposing of the stay petition in the process. The judgment was dictated and pronounced in open court by the Tribunal.