2015 (12) TMI 930 - HC - Customs

Revocation of CHA License - Forfeiture of security deposit - penalty under Regulation 18 of the Customs Brokers Licensing Regulations, 2013 - Held that - Licence granted to the respondent herein had expired, on 24.2.2015, and therefore, the contentions raised by the learned counsels appearing on behalf of the parties concerned are academic in nature. It is noted that the respondent herein had submitted an application, dated 9.1.2015, for the renewal of Customs Brokers Licence. It is also noted that the impugned show cause notice issued by the appellant, dated 5.3.2015, has been issued, under Section 20(1) of the Customs Brokers Licensing Regulations, 2013, for the revocation of the licence issued to the respondent herein and for other consequences. In view of the fact that the licence issued to the respondent had expired on 24.2.2015, this court is not inclined to go into the merits of the matter in depth, except to state that the impugned notice issued by the appellant, dated 5.3.2015, is beyond the period of limitation of 90 days prescribed under the relevant Regulation, taking note of the fact that the investigation report had been received, by the appellant, on 29.5.2012, as stated in Paragraph-6 of the common counter affidavit filed by the respondent, on 26.10.2015 - it is clear that it would be open to the appellant to consider the application of the respondent for the renewal of the licence, taking into consideration all the relevant factors, prescribed by law - Decided against Revenue.

Summary

Issues:
1. Validity of show cause notice issued by the Commissioner of Customs.
2. Renewal of Customs Broker License based on application date.
3. Compliance with Customs Brokers Licensing Regulations.
4. Period of limitation for issuing show cause notice.
5. Consideration of renewal application by the appellant.

Analysis:

1. The appeals were filed against a common order passed by a single Judge regarding two Writ Petitions. The first petition sought to quash a show cause notice issued by the Commissioner of Customs, while the second petition requested the renewal of a Customs Broker License based on an application.

2. The show cause notice in question was challenged on the grounds of being issued beyond the prescribed period of limitation under the Customs Brokers Licensing Regulations. The notice was issued after nearly three years from the alleged offense, and it was contended that the respondent had not violated any regulations.

3. The single Judge set aside the show cause notice, citing that it was issued beyond the period of limitation specified in the regulations. The Judge directed the appellant to consider renewing the Customs Broker License based on the application submitted by the respondent, if found in order and in accordance with the law.

4. Despite arguments from both parties' counsels, it was noted that the license had expired before the judgment. The court emphasized that the show cause notice was issued beyond the 90-day limitation period, considering the date of the investigation report received by the appellant.

5. The court declined to delve deeply into the matter due to the expired license but affirmed that the appellant could consider the renewal application if found compliant with the law. Consequently, the appeals were dismissed, upholding the single Judge's order to consider the renewal application for the license.