2017 (2) TMI 357 - AT - Customs

Restoration of CHA licence - time limitation - violation of time limit prescribed under Regulation 19 and 20 of CBLR, as the confirmation of suspension of the licence in the case in hand took place on 20.1.2016 and as on date i.e. 1.12.2016, there is no notice of revocation of the licence - Held that - the enquiry proceedings against the appellant may not be over 270 days from the date of confirmation of the suspension of licence - Since there is no issue of notice for revocation of the licence which should have been issued within 90 days of the receipt of the Offence Report, the further actions as regarding the enquiry and submission of enquiry report and the order of revocation within 90 days of each issue seems to be impossibility - 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 show cause notice till date from the date of confirmation of suspension of licence - licence restored - appeal allowed - decided in favor of appellant.

Summary

Issues:
Violation of time limit under Regulation 19 and 20 of CBLR for suspension of license.

Analysis:
The appeal challenged the confirmation of the suspension of a Custom Broker's license following an investigation by the CBI. The appellant argued that there was a delay in the proceedings as per the time limits prescribed under Regulations 19 and 20 of the Custom House Agents Licensing Regulations (CBLR). The counsel contended that the Commissioner of Customs was required to issue a notice within 90 days of receiving the Offence Report, followed by the submission of an enquiry report within 90 days of the notice, and the order of revocation within 90 days of the enquiry report. The appellant cited various decisions to support the argument, emphasizing the necessity of timely procedures in such cases.

The departmental representative, however, defended the suspension, stating that the time limits mentioned in the CBLR were directory and not mandatory. Referring to a High Court case, it was argued that the immediate suspension of a broker's license was essential and could not be contested if done promptly. The representative highlighted that in this case, the suspension was executed within a reasonable time frame, as accepted in the trade practices. Therefore, it was suggested that the appeal should be dismissed based on the nature of the suspension.

After considering both sides' arguments, the Tribunal found that the confirmation of the license suspension was done within the correct timeframe. However, it noted that further essential steps, such as issuing notices for revocation of the license and appointing an enquiry officer, had not been taken within the stipulated time limits. The Tribunal agreed with the appellant's contention that the enquiry proceedings might exceed the 270-day limit due to the delay in initiating necessary actions. Consequently, the Tribunal held that the impugned order was unsustainable due to the failure of the lower authorities to issue a show cause notice within the required timeframe. Citing the case laws presented by the appellant, the Tribunal set aside the impugned order and directed the lower authorities to reinstate the suspended license.

In conclusion, the Tribunal's decision focused on the procedural aspects of the suspension of the Custom Broker's license, emphasizing the importance of adhering to the prescribed time limits under the CBLR for conducting fair and timely enquiry proceedings.