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2020 (12) TMI 328 - HC - CustomsPrinciples of Natural Justice - Withdrawal of Customs Broker License - Direction to the respondent to allow the petitioner to resume its customs business on customs broker license - petition has been filed primarily on the ground that no notice or hearing was granted before such withdrawal of license - Validity of public notice No.28/2020-21 dated 07.09.2020 - HELD THAT - Petitioner in the present case is identically placed with M/S. S.K. FREIGHT LINES PVT. LTD. AND ANOTHER VERSUS UNION OF INDIA AND ANOTHER 2020 (11) TMI 196 - BOMBAY HIGH COURT where it was held that Since the impugned order withdrawing customs brokerage license of the petitioners would admittedly lead to adverse civil consequences upon the petitioners, the same ought to have been preceded by a notice and a reasonable opportunity of hearing and, therefore, the decision would be applicable to the facts of the present case as well. The public notice No.28/2020-21 issued on 07.09.2020 is set aside - matter remanded back to the respondent who shall give an opportunity of hearing to the petitioner and thereafter pass an appropriate order in accordance with law within a period of three weeks from the date of receipt of a copy of this order.
Issues:
Challenge to withdrawal of customs broker license without notice or hearing. Analysis: The petitioner, a partnership firm working as a customs broker under license No.11/2556, challenged the withdrawal of their license through public notice No.28/2020-21 dated 07.09.2020 without prior notice or hearing. The license was granted under Regulation 7(2)(b) of the Customs Broker Licensing Regulations, 2018, with validity up to 23.06.2029. The respondent justified the withdrawal in a detailed affidavit, but the petitioner contended that the withdrawal was invalid due to lack of notice or hearing. The respondent referred to a previous decision of the court in a similar case, M/s. S. K. Freight Lines Pvt. Ltd. Vs. Union of India, where the court held that withdrawal of a license without notice and hearing violated principles of natural justice. The court set aside the impugned order and remanded the matter back to the authorities for a fresh decision after providing an opportunity of hearing to the petitioners. In the present case, the court found that the petitioner was in a similar position as M/s. S. K. Freight Lines Pvt. Ltd. and applied the same reasoning. Consequently, the court set aside the public notice No.28/2020-21 and directed the respondent to provide an opportunity of hearing to the petitioner before passing any further order. The court emphasized that the fresh decision should be in the form of a speaking order with reasons provided for any actions taken. Until a new decision is made within three weeks, the status quo as of the current date was ordered to be maintained. The court clarified that no opinion on the merit of the case was expressed, keeping all contentions open for future consideration. In conclusion, the writ petition was disposed of, and the court's order was to be digitally signed and communicated to all concerned parties for compliance. The judgment highlighted the importance of adhering to principles of natural justice, particularly in cases involving the withdrawal of licenses or benefits, emphasizing the need for notice, hearing, and reasoned orders to maintain procedural fairness and transparency in administrative decisions.
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