2016 (9) TMI 829 - AT - Customs

Revocation of CHA license - forfeiture of security - imposition of penalty - Regulation 22 of CBLR, 2013 - attempt for irregular export of misdeclared cargo with a view to facilitate ineligible export incentive - statutory time limits - Regulation 20 (5) of CBLR, 2013 - enquiry report to be submitted within 90 days - Held that - when statutory time limits are prescribed under the law the same has to be strictly adhered to. The legal position in respect of time limits prescribed under Regulation 20 has been repeatedly held to be mandatory in nature. Failure to adhere the same will make the proceedings invalid. The issue is similar as decided in the case Indair Carrier Pvt. Ltd. vs. CC (General) 2016 (5) TMI 775 - DELHI HIGH COURT - As enquiry report not submitted within 90 days, merits of the case not considered. Appeal allowed - decided in favor of appellant.

Summary

Issues: Revocation of custom house agent license, violation of statutory time limits

Revocation of License Issue:
The appellant, a custom house agent, had their license revoked by the Commissioner of Customs (General), New Delhi, based on allegations of involvement in irregular export of misdeclared cargo. The revocation was preceded by an investigation by the DRI and issuance of a show cause notice proposing license revocation and forfeiture of security deposit. The appellant contested the order, arguing lack of contravention of CBLR, 2013 provisions and violation of statutory time limits. The appellant highlighted that the enquiry report was prepared ex-parte and not within the prescribed 90-day period from the date of issue of notice. The appellant emphasized that the proceedings were in violation of Regulation 20 (5) of CBLR, 2013, making them invalid.

Statutory Time Limits Issue:
The Tribunal examined the issue of statutory time limits under Regulation 20 of CBLR, which mandates specific timeframes for different stages of proceedings against a custom broker. The Tribunal noted that the show cause notice must be issued within 90 days from the date of receipt of an offence report, followed by the preparation and submission of the enquiry report within another 90 days. The Tribunal found that while the show cause notice was issued within the stipulated time, the enquiry report was submitted beyond the prescribed 90-day period. Citing legal precedents, the Tribunal emphasized the mandatory nature of adhering to statutory time limits and held that failure to comply renders the proceedings invalid. The Tribunal referred to decisions by the Delhi High Court, Madras High Court, and previous Tribunal rulings to support the strict adherence to statutory time limits.

Judgment:
The Tribunal, based on the finding that the enquiry report was not submitted within the prescribed 90 days, set aside the impugned order revoking the license. The Tribunal did not delve into the merits of the case due to the statutory time limit violation. Consequently, the appeal was allowed, and the impugned order was overturned. The Tribunal's decision was pronounced in open court on 03/08/2016.