2014 (11) TMI 909 - AT - Customs

Suspension of the CHA licence - Regulation 20 of the Customs Brokers Licensing Regulations, 2013 - Held that - Last time when the case was listed, we had specifically directed Revenue to submit status report on the progress of inquiry. It is unfortunate that in spite of such direction, Revenue is unable to submit any progress report on the mater. It shows the callous and irresponsible approach on the part of the Customs department in dealing with the inquiry proceedings under the CBLR. Time-limits have been laid down statutorily so that the inquiry progresses in a time bound manner and the proceedings completed within the stipulated period. The Customs department does not seem to have any regard or respect for these time-limits. In these circumstances, we are constrained to set aside the order of suspension and direct the Commissioner of Customs (General) to allow the appellant to function as a CHA forthwith. - Decided in favour of appellant.

Summary

Issues: Appeal against suspension of CHA license under Customs Brokers Licensing Regulations, 2013 (CBLR) due to delay in inquiry proceedings.

Analysis:
1. Issue of Delay in Inquiry Proceedings:
The appellant challenged the continuation of suspension of the CHA license under CBLR due to delays in the inquiry process. The appellant argued that the inquiry should have been completed within 90 days of issuing the chargesheet as per Regulation 20 of CBLR. However, the department failed to provide relied upon documents and a list of witnesses, leading to delays. The appellant's request for necessary information was ignored, and subsequent hearings were held without fulfilling the appellant's requests. The statutory time limits for submitting replies and passing final orders were not adhered to by the department, causing further delays. The appellant requested setting aside the suspension and resuming CHA operations.

2. Revenue's Response and Court's Observation:
The Revenue, represented by the Additional Commissioner, informed the court that the inquiry officer had been appointed, and the inquiry process was ongoing. However, the court noted with concern the lack of progress report submitted by the Revenue despite previous directions. The court criticized the Customs department for its careless and irresponsible approach towards the inquiry proceedings under CBLR. Emphasizing the importance of statutory time limits for timely completion of inquiries, the court expressed disappointment in the department's disregard for such deadlines.

3. Court's Decision and Directions:
In light of the delays and the department's failure to comply with statutory time limits, the court set aside the suspension order and directed the Commissioner of Customs to allow the appellant to resume CHA operations immediately. The court highlighted that while the suspension was lifted, the Revenue was free to continue the inquiry proceedings as per the law. The appeal was disposed of accordingly, with the court ordering the decision to be given dasti, indicating an urgent or immediate action.

In conclusion, the judgment addressed the issue of delay in inquiry proceedings under CBLR, criticized the Customs department for its negligence, and ruled in favor of the appellant by setting aside the suspension order and allowing the resumption of CHA operations while permitting the Revenue to continue the inquiry process lawfully.