2016 (4) TMI 833 - HC - Customs

Seeking direction to renew and activate Custom House Agents License - Cancelled for non-compliance of obligations - Respondent contended that inspite of granting three opportunities of personal hearing, the petitioner neither appeared for the personal hearing nor submitted any reply to the respondent, therefore, the contentions raised by the petitioner that the Writ Petition is maintainable inspite of having an alternative remedy of appeal for the reason that the order passed by the respondent is in clear violation of principles of natural justice, cannot be accepted. Held that - the petitioner has got an alternative remedy by way of an appeal and without exhausting the same, when there is no violation of principles of natural justice, the Writ Petition cannot be entertained. Since an alternative remedy by way of an appeal is available to the petitioner, it is open to the petitioner to challenge the impugned order before the Appellate Authority by way of an appeal in accordance with law. - Decided against the petitioner

Summary

Issues:
Renewal of Custom House Agents License, Violation of Regulations, Principles of Natural Justice, Alternative Remedy of Appeal

Renewal of Custom House Agents License:
The petitioner filed a Writ Petition seeking to quash an order dated 24.03.2015 and to direct the respondent to renew and activate the petitioner's Custom House Agents License. The petitioner had previously obtained the license, renewed it periodically, and conducted customs-related work for clients in the Port and Airport areas. The petitioner facilitated imports and exports, including handling clearances of vehicles and cars under specific schemes. Necessary authorizations and documents were obtained before undertaking customs-related work for various firms and individuals. However, an investigation revealed violations of regulations by the petitioner, leading to a show cause notice for license cancellation.

Violation of Regulations:
The Directorate of Revenue Intelligence found that the petitioner had violated obligations under the Custom Broker Licensing Regulations. Following an enquiry, the respondent disagreed with the Enquiry Officer's views and decided to revoke the license, imposing a penalty. Despite the petitioner's application for renewal, the license was not renewed, prompting the Writ Petition challenging the order. The respondent argued that the petitioner had multiple opportunities for a personal hearing but failed to attend or communicate, justifying the order's delay and dismissal of the Writ Petition.

Principles of Natural Justice:
The petitioner contended that the order violated principles of natural justice as the respondent reversed the Enquiry Officer's findings without giving an opportunity to the petitioner. However, the respondent provided multiple opportunities for a personal hearing, and the Court held that the petitioner's failure to participate or respond negated claims of a breach of natural justice. The Court emphasized that under Regulation 22, the Commissioner can disagree with the Enquiry Report and the aggrieved party can appeal the decision.

Alternative Remedy of Appeal:
The Court rejected the Writ Petition, citing the availability of an alternative remedy through an appeal under Regulation 22. The Court emphasized that without exhausting the appeal process and in the absence of a violation of natural justice, the Writ Petition could not be entertained. The Court referenced a previous order to clarify the mandatory nature of regulations, emphasizing the importance of following due procedures and exhausting available remedies before seeking judicial intervention.