2018 (5) TMI 521 - AT - Customs

Suspension of CHA License - it was claimed that there was no urgency in the matter for suspending the license of the Customs broker, as the Principal Commissioner has waited for suspending the licence from 27/09/2017 till 08/03/2018 - Held that - the Commissioner of Customs may in appropriate cases, where immediate action is necessary suspending the licence of a Customs Broker is not mandatory in each and every case, even though, the proceedings under CBLR, 2013 are undergoing by the Commissioner of Customs. Secondly, the suspension can be made only in appropriate cases, where immediate action is necessary. The case is related to import for which the Bill of Entry was filed in March 2017 for which a show-cause notice under Customs Act was issued in September 2017, if at all there was necessity to suspend the licence, the department should have taken action immediately after detection of the case, which was not done so in this case and the department waited for more than six months - thus, there was no immediate requirement of suspension of the licence. The order suspending the Customs Broker licence is set aside - appeal allowed - decided in favor of appellant.

Summary

Issues:
Appeal against suspension order by the Principal Commissioner of Customs (General), NCH, Mumbai.

Analysis:
The appellant argued that the suspension order was made under Regulation 19(1) of CBLR, 2013, in relation to a Customs case. The appellant contended that there was no urgency in suspending the license, citing the delay between the issue of the show-cause notice and the suspension order. Reference was made to the Hon'ble Bombay High Court judgment in the case of National Shipping Agency - 2008 (226) ELT 46 (Bom) to support the argument that suspension should only be immediate in appropriate cases.

The Revenue, represented by the Ld. AR, reiterated the findings in the impugned order.

Upon careful consideration, the Tribunal noted that the Customs case was detected at the time of filing the Bill of Entry in March 2017, with a show-cause notice issued in September 2017. The Tribunal observed that the suspension of the Customs Broker's License could have been done immediately after the case detection without waiting for the show-cause notice, as per Regulation 19(1) of CBLR, 2013. The Tribunal emphasized that the power to suspend the license is discretionary and should be exercised only in appropriate cases where immediate action is necessary.

In light of the above, the Tribunal found that the delay in suspending the license for over six months indicated no immediate necessity for the suspension. Citing the precedent set by the Hon'ble Bombay High Court in the case of National Shipping, the Tribunal set aside the order suspending the Customs Broker license. The Principal Commissioner of Customs was granted the liberty to conduct an enquiry and conclude the proceedings under CBLR, 2013. The appeal was allowed accordingly, and the stay petition was disposed of.

The judgment was pronounced in court on 13/04/2018.