2015 (10) TMI 97 - AT - Customs

Denial of renewal of Customs Broker License - Held that - When the appellant made application on 22.5.2014 before Customs for requesting for renewal the same was kept pending. We find that when the appellant filed writ petition and the Hon ble High Court in their order directed the respondent i.e. Commissioner of Customs to consider their application on merits within four weeks. It is pertinent to see that it is only after the Hon ble High Court direction in the above order the authority has considered the application and denied the renewal. It is needless to say that when a Lower Authority was directed by the High Court to decide the application, the Commissioner of Customs being respondent in the said High Court order should have signed and issued the said order in this case whereas we find there is not even any mention of the High Court order in the said letter signed by the Deputy Commissioner of Customs and issued in a routine manner communicating the Commissioner s decision of denial of renewal of licence. Valid reason or any new grounds made out for denial for renewal of licence. Instead the same findings and allegations are made in para 3 to 5 of the OIO dt. 30.4.04 of revocation of licence were reproduced in the said order and based on this came to conclusion that CHA appellant s antecedents are not satisfactory. Once the order is stayed absolutely by Hon ble High Court and court is yet to decide the writ petition, it cannot be termed as adverse antecedents unless and until the writ petition is disposed by the Hon ble High Court. In view of the above facts and also considering the LAA had renewed the licence 14 times since 2006, we are of the considered view that CHA licence merits renewal - Decided in favour of appellant.

Summary

Issues:
1. Maintainability of appeal against AC's letter denying renewal of Customs Broker Licence.
2. Periodical renewal of Customs Broker licence pending outcome of High Court decision against revocation of licence.

Issue 1 - Maintainability of appeal:
The appellant filed an appeal against a letter issued by the Asst. Commissioner of Customs denying the renewal of Customs Broker Licence. The Bench initially dealt with the issue of the appeal's maintainability against the AC's letter. The Revenue was directed to confirm if any order was passed by the Commissioner directing the decision conveyed by the subordinate. The matter was listed for further consideration, and after due process, the appeal was admitted for hearing.

Issue 2 - Periodical renewal pending High Court decision:
The main issue in this case revolved around the periodic renewal of the Customs Broker licence by the Competent Authority while awaiting the High Court's decision regarding the revocation of the licence. The appellant's original CHA Licence was revoked in 2004, which was challenged in the High Court. The High Court granted an absolute stay on the revocation order, and the final disposal of the writ petition was pending. Despite this, the department periodically renewed the licence until 2008. The appellant applied for renewal in 2014, which was kept pending. Subsequently, a writ petition directed the Commissioner of Customs to review the application on its merits. The Commissioner denied the renewal citing unsatisfactory antecedents, similar to the grounds for revocation in 2004. The Tribunal noted that the High Court's stay on the revocation order should prevent reliance on past antecedents until the writ petition's final decision. The Tribunal found no fresh allegations for denial and referenced a previous decision for issuing a temporary licence in similar circumstances.

The Tribunal observed discrepancies in the denial of renewal, noting that the High Court's direction to consider the application on merits was not properly followed by the Commissioner. The Tribunal found no valid reasons or new grounds for denial, as the same findings from the 2004 revocation order were reproduced. Given the absolute stay by the High Court and the pending writ petition, the Tribunal concluded that the denial based on antecedents was premature. Considering the history of multiple renewals and the lack of substantial new allegations, the Tribunal held that the Customs Broker Licence should be renewed and set aside the denial letter. The Commissioner of Customs was directed to renew the appellant's licence, and the appeal was allowed.