2020 (6) TMI 363 - HC - Customs

Application of the respondent for obtaining licence under CBLR - Conditions to be fulfilled by the applicants as per clause 5(f) of CBLR - HELD THAT - The words 'or' in clause (ii) of clause 5(f) of the CBLR, makes the two parts mutually exclusive and independent - Therefore, the words 'possess a professional degree such as Masters', without any specification of the subject in the said clause, could encompass, in our opinion, the Masters Degree in Science also, which the petitioner did admittedly satisfy. The words 'such as' before the words 'Masters' cannot obliterate the words 'or' and the respondent cannot be compelled to have Masters Degree in Accounting/Finance/Management. Apparently even a partner or director of a partnership firm or a company having sufficient experience, can apply provided, he is a graduate and holds a Masters Degree in any subject or an equivalent degree in Accounting/Finance or Management, CA/MBA/LLB. etc. Before the words 'is having atleast two years experience in transacting Customs Broker work as G-Card holder;' also, there is another or in clause (ii) of clause 5(f) of CBLR. Thus, obviously clause (ii) is in three parts and it permits a person holding (1) Master Degree in any subject or (2) an equivalent to Masters Degree in Accounting/Management/Finance etc., or (3) having an experience of two years as G Card holder, thus a mixture of three categories with no watertight silos in these categories, are given as criteria to apply for such Customs Broker License under CBLR - the contention of the learned counsel for the appellant/Revenue that the words 'such as' before the words 'Masters' in part of clause (ii) should be read with the subjects like Accounting/Finance or Management is not found to be a tenable contention. The respondent herein, Mr.T.Radhakrishnan, prima facie appears to be a highly qualified person or rather overly qualified to hold the Customs Broker Licence, and he fulfills the criteria of eligibility as given in clause 5 of CBLR itself - Appeal dismissed.

Summary

Issues:
- Interpretation of Customs Brokers Licensing Regulations, 2013 (CBLR) regarding educational qualifications for obtaining a license.

Analysis:
1. The Central Board of Customs & Central Excise filed an appeal against a Single Judge's order allowing a writ petition seeking a license under CBLR. The Single Judge found that the petitioner, possessing a Master's Degree in Science from an Indian Institute of Technology, was qualified to take the written examination for the Customs Broker License, contrary to the disqualification mentioned by the respondents.

2. The CBLR clause 5(f) requires an applicant to be a graduate from a recognized university and possess a professional degree such as Masters in Accounting, Finance, Management, or have relevant experience. The appellant argued that the petitioner's Master of Business Administration from an international university was not equivalent to an Indian degree, thus not fulfilling the requirements.

3. The Court rejected the appellant's argument, emphasizing that the clause's wording allows for flexibility in interpreting the educational qualifications. The clause's use of "or" makes the two parts independent, enabling a broader interpretation. The clause also allows individuals with experience as G-Card holders to apply, indicating a mix of criteria for eligibility.

4. The Court highlighted that the purpose of the license is not for employment in the Customs Department but to practice as a Customs Broker. The stringent interpretation of educational qualifications was deemed incorrect, as the petitioner, being highly qualified, met the eligibility criteria as per CBLR.

5. Ultimately, the Court dismissed the appeal, stating that the petitioner fulfilled the eligibility criteria and criticizing the Revenue Department for challenging the Single Judge's order. The Court found no merit in the appeal and ordered its dismissal, along with closing the connected petition.

This detailed analysis of the judgment showcases the Court's interpretation of the CBLR regarding educational qualifications for obtaining a Customs Broker License, emphasizing flexibility and adherence to the regulatory framework.