2015 (7) TMI 455 - HC - Customs

Revocation of Customs Broker Licence - belated issuance of SCN - allegation that it was found that the Customs Broker the petitioner herein had attempted to assist and clear the impugned goods at a much lower value to evade payment of applicable duties by suppressing the Load Port Chartered Engineer s Certificate and original purchase invoices of the subject machineries which would have resulted a possible revenue loss to the Government to the tune of 1.05 crores. Held that - it is explicit that the show cause notice under Regulation 20(1) is required to be issued within 90 days from the date of receipt of the offence report as prescribed under Regulation 22. In the present case the offence report was received on 29.08.2012 and the show cause notice was issued on 05.03.2015 by which it is clearly revealed that it was issued beyond the period stipulated in Regulation 22(1). Therefore when the impugned show cause notice has been issued beyond the statutory period as rightly pointed out by the learned senior counsel for the petitioner that the same cannot be sustained for want of jurisdiction. - SCN set aside. In view of setting aside the impugned show case notice dated 05.03.2015 there is no impediment for the respondent to renew the Customs Broker Licence of the petitioner in terms of Regulation 9(1) of the CBLR 2013. - Decided in favor of appellant.

Summary

Issues:
1. Challenge to show cause notice dated 05.03.2015 under Customs Brokers Licensing Regulations, 2013.
2. Petition for renewal of Customs Broker License based on application dated 09.01.2015.

Analysis:

Issue 1: Challenge to Show Cause Notice
The petitioner challenged a show cause notice dated 05.03.2015 issued by the respondent, alleging violations under Customs Brokers Licensing Regulations, 2013. The notice accused the petitioner of attempting to clear imported goods at a lower value to evade duties, potentially causing a revenue loss to the government. The respondent suspended the petitioner's license invoking Regulation 91 of CBLR, 2013. The petitioner contended that the notice was issued beyond the prescribed period of 90 days from the offense report, as required by Regulation 22(1). The petitioner argued that the notice violated Regulation 20(1) and relied on past court decisions to support their case. The court examined the legal provisions under Regulation 20 and Regulation 22, emphasizing the importance of timely issuance of show cause notices. Citing precedent, the court held that the notice issued after the statutory period lacked jurisdiction and set it aside, allowing for the renewal of the petitioner's license.

Issue 2: Petition for License Renewal
Simultaneously, the petitioner sought a Writ of Mandamus in W.P.No.7189 of 2015 to direct the respondent to renew their Customs Broker license based on an application dated 09.01.2015. The petitioner had filed for license renewal before the expiration of the ten-year tenure, but the respondent did not respond. The court noted that with the setting aside of the show cause notice, there was no impediment for the respondent to renew the petitioner's license in accordance with Regulation 9(1) of CBLR, 2013. The court directed the respondent to consider the renewal application within six weeks of the court order, emphasizing compliance with the law.

In conclusion, the court allowed both writ petitions, setting aside the show cause notice and directing the renewal of the petitioner's Customs Broker license based on the application submitted earlier. The judgment highlighted the importance of adherence to statutory timelines in issuing show cause notices under the relevant regulations and emphasized the need for procedural fairness in regulatory actions related to Customs Broker licensing.