2016 (5) TMI 598 - HC - Customs

Seeking declaration for the respondent s action violating the petitioner s fundamental right and Constitutional mandate - Article 19(1)(g) and Article 14 of the Constitution of India - not allowing the normal operation of the Customs Broker License as per order of CESTAT - prohibitory orders. Held that - interest of justice would be served, if we direct the Commissioner at Kanpur to conclude the proceedings as expeditiously as possible and within two months from the date of receipt of a copy of this order. If the proceedings could not be concluded for reasons other than non co operation of the petitioner, then, the Commissioner may consider the petitioner s request for restoration of the license, pending enquiry and such application shall be dealt with on its own merits and in accordance with law without being uninfluenced by a prior prohibitive order and pendency of the enquiry. We also clarify that the enquiry shall be concluded by the Commissioner by applying his mind independently to the charges in the show cause notice, the explanation given by the petitioner thereto and the documents and materials relied upon by the petitioner. The Commissioner should not influence himself by any preliminary enquiries or findings in any preliminary report. Equally, the Commissioner is free to decide the issue uninfluenced by any prima facie or tentative observation of the Tribunal. - Petition disposed of

Summary

Issues:
1. Violation of fundamental rights under Article 19(1)(g) and Article 14 of the Constitution of India due to Customs Authorities' actions.
2. Allegations of forged or bogus No Objection Certificate leading to seizure of goods and prohibitory order against the petitioner.
3. Tribunal's decision setting aside the prohibitory order and allowing the petitioner to resume business.
4. Challenge by Revenue against Tribunal's decision and subsequent legal proceedings.
5. Pending appeal by Revenue challenging Tribunal's decision and the continued prohibitory order.

Analysis:
1. The petitioner sought a declaration that Customs Authorities' actions violated fundamental rights under Article 19(1)(g) and Article 14 of the Constitution. The petitioner, a Customs House Agent Broker, faced allegations of using a forged or bogus No Objection Certificate for clearance of goods. The Tribunal's order set aside the prohibitory order, allowing the petitioner to continue business immediately.

2. The Revenue challenged the Tribunal's decision, leading to legal proceedings. The Commissioner of Customs at Kanpur issued a show cause notice, justifying the prohibitory order based on the petitioner's alleged non-compliance with Customs Broker License Regulations. The Court directed the Commissioner to conclude the proceedings within two months and independently assess the charges and evidence without influence from prior findings or observations.

3. Despite the Tribunal's order and the petitioner's favorable outcome, the prohibitory order remained in force due to the pending appeal by the Revenue. The Court emphasized expeditious conclusion of proceedings and instructed the Commissioner to consider restoration of the license based on merit and law, without being influenced by prior orders or ongoing enquiries.

4. The Court clarified that the Commissioner should independently evaluate the charges, explanations, and evidence, disregarding any preliminary findings or observations. The petitioner was granted the opportunity to raise legal contentions during the proceedings, with the requirement for the Commissioner to provide a detailed reasoning for the final decision. The petition and appeal were disposed of, along with the Notice of Motion.

By addressing the issues of fundamental rights violation, alleged certificate forgery, Tribunal's decision, Revenue's challenge, and the continued prohibitory order, the Court provided a comprehensive resolution ensuring fair proceedings and independent assessment in accordance with the law.