2018 (1) TMI 1280 - HC - Customs

Time Limitation - Whether when the Commissioner disagrees with the enquiry report which is in favor of the broker, does the time limit of 90 days from the date of such report for passing a final order under the Regulation 20(7) of CBLR, apply? Held that - Regulation 20(7) of the CBLR does not make any distinction between an enquiry report in favour of a broker and that which is against him. In either event, a copy of the report is to be made available to him. If it is adverse to the broker, he can make a representation - The impugned order is against the broker. If the report also had been against the broker, then such consequential order cancelling the license would again have to be passed under Regulation 20(7) - the Commissioner should have adhered to the 90 days limit as specified in Regulation 20(7) of the CBLR. Appeal dismissed - decided against appellant.

Summary

Issues:
Appeal against order canceling Customs Broker License under CBLR - Interpretation of Regulation 20(7) - Compliance with time limit of 90 days - Disagreement with enquiry report - Opportunity for broker to make representation.

Analysis:
The High Court heard an appeal by the Department challenging the Customs, Excise & Service Tax Appellate Tribunal's decision to allow the respondent's appeal against the Commissioner of Customs' order canceling the Customs Broker License under the Customs Brokers Licensing Regulations (CBLR). The main issue raised was whether the time limit of 90 days under Regulation 20(7) of CBLR applies when the Commissioner disagrees with an enquiry report favoring the broker.

The Department argued that the CBLR does not contemplate a scenario where an enquiry report supports the broker, making it impractical to meet the 90-day deadline for passing a final order. The Department claimed compliance with court directions in a previous case and providing enquiry reports to the broker, suggesting that the time limit should not be mandatory. However, the Court disagreed, emphasizing that Regulation 20(7) of CBLR does not differentiate between reports favoring or opposing the broker. The regulation requires the Commissioner to pass orders within 90 days of receiving the report, allowing the broker to make representations.

The Court held that if the enquiry report is against the broker, and the subsequent order cancels the license, the Commissioner must adhere to the 90-day time limit specified in Regulation 20(7) of CBLR, regardless of disagreement with the report. The Court found the argument that the regulation does not envisage such a limit to be unacceptable. Ultimately, the Court concluded that no substantial question of law arose in the case, leading to the dismissal of the appeal.

This detailed analysis highlights the key legal issues, arguments presented, and the Court's interpretation of the relevant regulations, providing a comprehensive understanding of the judgment.