2022 (10) TMI 445 - HC - Customs

Direction to respondents to intimate/convey the reasons for suspending the custom broker licence - revocation of suspension of the custom broker licence bearing number 09/2001 of the petitioner - authority to suspend the custom broker licence of the petitioner - HELD THAT -The petitioner cannot be prevented from carrying on its business, at least in the Delhi Commissionerate. That being said, it would be open to the respondents to take requisite steps, in accordance with Regulation 16 read with Regulation 7(3) of the Customs Broker Licensing Regulations, 2018 and other applicable provisions of law - Petition disposed off.

Summary

Issues:
1. Suspension of custom broker license without reasons provided
2. Request to revoke the suspension of the custom broker license
3. Lack of show cause notice before suspension of the license

Analysis:

Issue 1: Suspension of custom broker license without reasons provided
The petitioner sought a writ mandamus to direct the respondents to convey reasons for suspending the custom broker license. The Court noted that the suspension was ordered for all ports/CFS under the Noida Customs Commissionerate with effect from 17.05.2022. The petitioner was granted a personal hearing on 30.05.2022, but the reply to the notice was not on record. The Court highlighted Regulation 16 of the Customs Brokers Licensing Regulations, 2018, allowing suspension for specified Customs Stations with reasons to be recorded in writing. The suspension was limited to the Noida Customs Commissionerate, leading to the petitioner's grievance of being unable to operate under the Delhi Commissionerate.

Issue 2: Request to revoke the suspension of the custom broker license
The petitioner also requested a writ mandamus to revoke the suspension of the custom broker license. The Court observed that no specific order had been passed following the communication requesting suspension dated 18.05.2022. Consequently, the Court held that, for the time being, the petitioner should not be prevented from conducting business, at least in the Delhi Commissionerate. The respondents were directed to follow the provisions of Regulation 16 and other applicable laws for any further actions.

Issue 3: Lack of show cause notice before suspension of the license
The petitioner contended that no show cause notice was issued before the suspension of the custom broker license, as required under the Customs Broker Licensing Regulations, 2018. The Court emphasized the importance of providing an opportunity of hearing to the broker within fifteen days of suspension, as per the regulations. Despite the absence of a counter-affidavit from the respondents, the Court disposed of the writ petition, allowing the petitioner to continue business operations in the Delhi Commissionerate until further actions were taken in compliance with the regulations.

This detailed analysis of the judgment highlights the key issues raised by the petitioner regarding the suspension of the custom broker license, the lack of reasons provided, and the absence of a show cause notice before the suspension. The Court's interpretation of the relevant regulations and directives provided clarity on the petitioner's rights and the respondents' obligations in this legal matter.