2022 (7) TMI 470 - HC - Customs

Revocation of Customs Broker's License - collection of bribes - availability of remedy of appeal under Section 139 A r/w Regulation 18 of the Customs Brokers Licensing Regulations, or not - HELD THAT - The petitioner deserves an opportunity to approach the Customs Excise and Service Tax Appellate Tribunal with his grievances. Since the cancellation of the license of the petitioner causes serious prejudice to the petitioner in as much as he is unable to carry on with his business, it is opined that till the stay application to be filed by the petitioner before the Tribunal is considered, the petitioner is entitled to an order staying the operation of Ext.P6. The petitioner is relegated to the alternative remedy of appeal before the Customs Excise and Service Tax Appellate Tribunal - application disposed off.

Summary

Issues:
Revocation of Customs Broker License, Legality of Ext-P6 order, Arbitrariness in action, Lack of alternative remedy at Customs Excise and Service Tax Appellate Tribunal, Prejudice caused to petitioner, Allegations of bribery, Entitlement to relief under Article 226.

The petitioner approached the Kerala High Court challenging the revocation of their Customs Broker License through Ext-P6 order. The petitioner's counsel argued that the order was illegal, unsustainable, and arbitrary. They highlighted that the petitioner had to resort to the court due to the unavailability of regular sittings at the Customs Excise and Service Tax Appellate Tribunal in Bangalore. The counsel emphasized that other brokers facing similar allegations had not faced license cancellation, and no action was taken against the officer accused of collecting bribes. The specific allegation against the petitioner was a bribe payment of Rs.100 to a customs officer's agent. The Standing Counsel opposed relief, citing the availability of appeal under Section 139 A r/w Regulation 18 of the Customs Brokers Licensing Regulations and the seriousness of the allegations. The court, after hearing both sides, decided that the petitioner should have the opportunity to appeal to the Customs Excise and Service Tax Appellate Tribunal. Acknowledging the prejudice caused by the license cancellation, the court granted a stay on Ext-P6 until the petitioner filed an appeal with the Tribunal. The court directed the petitioner to file the appeal and stay petition within 10 days, suspending Ext-P6 until the Tribunal's decision. The judgment clarified that the Tribunal would decide independently, unaffected by the court's observations, and warned that failure to file the appeal within the specified period would nullify the benefits of the judgment.

In conclusion, the Kerala High Court allowed the petitioner to appeal to the Customs Excise and Service Tax Appellate Tribunal against the revocation of their Customs Broker License. The court stayed the operation of Ext-P6 until the petitioner filed the appeal and directed the petitioner to submit the appeal and stay petition within 10 days. The judgment emphasized the independence of the Tribunal in deciding the matter and warned that failure to meet the filing deadline would result in the petitioner losing the benefits of the judgment.