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2018 (1) TMI 835 - HC - CustomsRenewal of CHA License - renewal of licence for a period of ten years from 04.01.2018 - pendency of SCN. Held that - mere pendency of a show cause is not a ground to withhold the petitioner s application for renewal - the Department should take an appropriate stand in the matter in extending the licence of the petitioner for a shorter period, when the petitioner, in terms of the regulations, is entitled for renewal up to ten years - Admittedly, no action has been taken by the Department under the Customs Brokers Licensing Regulations, 2013 against the petitioner. In such circumstances, to renew the licence of the petitioner for shorter periods would result in not only prejudice being caused to the petitioner, but also leading to multiplicity of proceedings, which definitely should not be at the behest of the Department. This writ petition is partly allowed by directing the first respondent to renew the petitioner s customs brokers licence for a period of two years with effect from 04.01.2018 onwards and pass orders to the said effect within a period of one week from the date of receipt of a copy of this order.
Issues:
Renewal of customs broker's license under Customs Brokers Licensing Regulations, 2013. Analysis: 1. Issue of Renewal of License: The petitioner sought a writ of mandamus to direct the respondents to renew their customs broker's license for ten years from 04.01.2018. This was the third time the petitioner approached the court for similar relief. The first writ petition in 2015 resulted in the renewal of the license for one year, and the second petition in 2017 left the decision on the full term renewal open. The court noted that the penalty imposed on the petitioner was still pending finality due to a revision application before the Central Government. Despite the department's willingness to consider a six-month renewal, the court held that the petitioner was entitled to renewal for up to ten years under the regulations. The court emphasized that renewing the license for shorter periods would prejudice the petitioner and lead to unnecessary proceedings, considering the delays in the revision process under the Customs Act, 1962. Therefore, the court directed the renewal of the petitioner's license for two years from 04.01.2018 to avoid such prejudice and multiplicity of proceedings. 2. Judicial Review and Compliance with Regulations: The court's decision was based on a thorough review of the previous petitions, the department's actions, and the legal entitlements of the petitioner under the Customs Brokers Licensing Regulations, 2013. The court highlighted that the pendency of a show cause notice or a penalty imposition should not be grounds to deny the petitioner's renewal application. By considering the delays in the revision process and the potential prejudice caused by shorter renewals, the court exercised its judicial discretion to ensure compliance with the regulations and protect the petitioner's rights. The judgment emphasized the importance of adhering to legal procedures and providing fair treatment to license holders in such cases. 3. Duration of Renewal and Administrative Considerations: The court's decision to grant a two-year renewal period starting from 04.01.2018 was based on a balance between the petitioner's entitlement under the regulations and the ongoing administrative processes, including the pending revision application. By opting for a two-year renewal, the court aimed to provide a reasonable timeframe for the petitioner while considering the delays in the revision process and the potential impact of shorter renewals on the petitioner's rights and legal position. This approach demonstrated the court's consideration of both legal entitlements and practical administrative challenges in reaching a fair and just decision in the matter. In conclusion, the court's judgment in the case addressed the issue of renewal of the petitioner's customs broker's license under the Customs Brokers Licensing Regulations, 2013. By granting a two-year renewal period starting from 04.01.2018, the court balanced the petitioner's entitlement under the regulations with the ongoing administrative processes and potential delays in the revision application. The decision underscored the importance of judicial review, compliance with regulations, and fair treatment of license holders in such matters.
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