2017 (2) TMI 351 - AT - Customs

Revocation of CHA licence - smuggling of red sanders - time limit prescribed under Regulation 19 and 20 of CBLR - Held that - the notices for revocation of the licence or appointing the enquiry officer for enquiry into the violation of the regulations, is not yet undertaken. In the absence of any such activity on the part of the lower authorities, we agree with learned counsel that the enquiry proceedings against the appellant may not be over 270 days from the date of confirmation of the suspension of licence. Although the lower authorities may not be able to complete the proceedings within the stipulated period of 270 days, the impugned order is unsustainable only on the ground that the lower authorities have not issued any SCN till date from the date of confirmation of suspension of licence. Appeal allowed - decided in favor of appellant.

Summary

Issues:
Violation of time limit under CBLR for suspension of license, interpretation of time period as directory or mandatory, necessity of immediate suspension of license, completion of enquiry proceedings within stipulated period.

Analysis:
The appeal challenges the suspension of a Custom Broker's license following an investigation into smuggling activities involving a director of the broker firm. The appellant argues a violation of time limits under CBLR, citing the requirement for timely issuance of notices and completion of enquiry proceedings. The appellant relies on various precedents to support the argument. The departmental representative contends that the time limits are directory and immediate suspension is crucial, referencing a relevant High Court judgment. The Tribunal notes the correct timeline for suspension confirmation but observes a lack of further actions such as issuing notices for revocation or appointing an enquiry officer. Due to this inactivity, the Tribunal agrees with the appellant that completing the proceedings within 270 days seems unlikely. The Tribunal finds merit in the argument that the absence of a show cause notice post-suspension confirmation renders the impugned order unsustainable, leading to setting aside the order and directing restoration of the license. The decision was pronounced on 11.1.2017.