2014 (11) TMI 359 - HC - Customs

Suspension of Custom Broker License - Prohibition to operate as Customs Broker within the jurisdiction of Cochin Customs - Held that - The said order is an order suspending the license of the petitioner after granting an opportunity of hearing. Respondent has no contention that the authority has no jurisdiction to pass the order or it has been passed in breach of the rules of natural justice. There being a statutory remedy available, we are of the view that this Court ought not have entertained the writ petition by passing the impugned order. It is well settled by the Apex Court that the exercise of writ jurisdiction can be made by this Court under Article 226 of the Constitution in cases where a statutory remedy is not provided. The Apex Court in this context has laid down in Whirlpool Corporation v. Registrar of Trade Marks, Mumbai and others 1998 (10) TMI 510 - SUPREME COURT that when a statutory remedy is provided, the High Court shall not entertain a writ petition, except in cases where the order impugned is passed in violation of principles of natural justice in wholly without jurisdiction or when the vires of the Act is challenged. Thus, we are satisfied that the interim order passed by learned Single Judge cannot be upheld. Consequently, we set aside the interim order passed by learned Single Judge dated 23.09.2014. We, however, observe that the Commissioner of Customs, Mumbai may proceed to finalise the proceedings as early as possible - Decided in favour of Revenue.

Summary

Issues involved:
Challenge to suspension orders passed by the Commissioner of Customs, Cochin and Commissioner of Customs (General), Mumbai under Customs Broker Licensing Regulations, 2013. Jurisdiction of the High Court to entertain a writ petition when a statutory remedy is available.

Analysis:

Issue 1: Suspension Orders Challenge
The respondent/writ petitioner challenged two orders: one passed by the Commissioner of Customs, Cochin prohibiting the petitioner from operating as a Customs Broker within Cochin jurisdiction, and the second passed by the Commissioner of Customs (General), Mumbai suspending the petitioner's Customs Broker license under Regulation 19 of the Customs Broker Licensing Regulations, 2013. The learned Single Judge modified the Mumbai Commissioner's order, restricting the suspension to operating at Cochin terminal only. The appellants' Standing Counsel argued that the Mumbai Commissioner's suspension order was valid under Regulation 19, and the writ petitioner had a statutory remedy to appeal under Section 129A of the Customs Act, 1962. The respondent's counsel contended that the suspension was due to the absence of a review order from the Cochin Customs office and that there were no irregularities in the petitioner's work elsewhere. The High Court found that the Mumbai Commissioner's order was passed after due process and within jurisdiction, and as a statutory remedy existed, the writ petition should not have been entertained by the Single Judge.

Issue 2: Jurisdiction of the High Court
The High Court examined the jurisdiction to entertain a writ petition when a statutory remedy is available. Referring to the Supreme Court's ruling in Whirlpool Corporation v. Registrar of Trade Marks, Mumbai, the High Court reiterated that writ jurisdiction under Article 226 should not be exercised when a statutory remedy is provided, except in cases of violation of natural justice, lack of jurisdiction, or challenge to the Act's validity. Since a statutory remedy was available to the writ petitioner under Regulation 21 by appealing to the Customs, Excise and Service Tax Appellate Tribunal, the High Court concluded that the Single Judge's interim order could not be upheld. Consequently, the High Court set aside the interim order, allowing the Commissioner of Customs, Mumbai to proceed with finalizing the proceedings promptly. The High Court emphasized that the writ petitioner could avail the statutory remedy if advised to do so.

In conclusion, the High Court allowed the Writ Appeal, setting aside the interim order passed by the Single Judge and directing the Commissioner of Customs, Mumbai to conclude the proceedings swiftly, while affirming the availability of the statutory remedy for the writ petitioner.