2017 (2) TMI 820 - HC - Customs

Renewal of CHA licence - whether mere pendency of a writ petition wherein the petitioner sought for release of 75 containers can be a reason to refuse to renew the petitioner s Custom House Agents License? - Held that - the pendency of a SCN for adjudication that too for a period of three years cannot be a sole ground to grant temporary renewal to the petitioner. That apart, it is not known as to why the Officer, who had adjudicated the show cause and given a personal hearing on 21-6-2012, has not passed any orders on the petitioner s application. As already observed, merely because the petitioner has approached this Court seeking certain relief and the writ petition is pending does not mean that the petitioner is charged with a misconduct - the reason assigned by the respondents in the counter affidavit for not granting renewal for a longer period and renewing the license temporarily is not sustainable - petiiton allowed - decided in favor of petitioner.

Summary

Issues:
Renewal of license under Custom House Agents Licensing Regulations, 2004 (now Customs Brokers Licensing Regulations, 2013) for petitioner.

Detailed Analysis:
1. Background and Petitioner's Request:
The petitioner, a Steamer Agent representing various companies, sought a writ of mandamus for license renewal under the updated regulations. The petitioner had held a license since 2009, initially granted for two years, and subsequently renewed temporarily due to pending issues.

2. Reasons for Temporary Renewal:
The 2nd respondent cited the pendency of a show cause notice related to alleged cargo discrepancies as the basis for temporary renewals. The show cause notice involved allegations of short landing of cargo and proposed confiscation of goods and containers, with pending adjudication since 2012.

3. Legal Standpoint and Regulation Reference:
The respondents referred to Regulation 9 of the 2013 Regulations, highlighting the consideration of renewal in the absence of misconduct complaints. The court analyzed the situation, emphasizing that mere pendency of a show cause notice should not be the sole reason for temporary renewal.

4. Court's Decision and Rationale:
The court found the reasons provided for temporary renewal unsubstantiated, especially given the prolonged adjudication period without any final orders. The court ruled in favor of the petitioner, directing the 2nd respondent to renew the license for one year from a specified date and complete the adjudication process promptly after providing a fresh personal hearing opportunity to the petitioner.

5. Conclusion:
The court allowed the writ petition, emphasizing the importance of fair consideration and timely resolution in licensing matters. The judgment aimed to ensure procedural fairness and prompt resolution of pending issues, granting the petitioner the requested license renewal for a specified period and instructing the authorities to expedite the adjudication process.