2023 (2) TMI 287 - HC - Customs

Time Limitation for issuance of order - Revocation of Customs Broker License - forfeiture of security deposit - levy of penalty - order issued beyond the period of ninety days from the receipt of the Offence Report - petitioner also contends that the impugned order was passed on an erroneous premise that the petitioner has acted as a Customs Broker in respect of the exports under certain shipping bills - HELD THAT - In the present case, the Show Cause Notice dated 24.01.2020 issued to the petitioner is, clearly, erroneous as it proceeds on the basis that the Show Cause Notice dated 22.10.2019 is the Offence Report - Mr. Kumar, the learned counsel for the respondent does not dispute that the Show Cause Notice dated 22.10.2019 is in respect of the same offence as the subject matter of the Offence Report dated 16.02.2015. It is apparent that the proceedings for revocation of the petitioner s license were commenced beyond the period of ninety days from the date of the Offence Report. Since the notice in this case, was issued beyond the period of ninety days from the Offence Report, the impugned order cannot be sustained - It is also not disputed that the petitioner has not acted as a Customs Broker in respect of exports under the offending Shipping Bills. Petition allowed.

Summary

Issues Involved:
1. Jurisdiction and timeliness of the impugned order.
2. Alleged role of the petitioner as a Customs Broker.
3. Previous Tribunal findings and their implications.
4. Compliance with Customs Brokers Licensing Regulations.
5. Validity of the Show Cause Notice dated 24.01.2020.

Detailed Analysis:

1. Jurisdiction and Timeliness of the Impugned Order:
The petitioner challenged the impugned order dated 31.12.2020, arguing it was issued beyond the ninety-day period from the receipt of the Offence Report (received on 16.02.2015). The Court noted that the proceedings for revocation of the petitioner's license were commenced beyond the stipulated ninety days from the date of the Offence Report, as mandated by Regulation 17(1) of the Customs Brokers Licensing Regulations, 2018. This regulation requires the issuance of a notice within ninety days from receipt of the Offence Report, which was not adhered to in this case.

2. Alleged Role of the Petitioner as a Customs Broker:
The impugned order was based on the premise that the petitioner acted as a Customs Broker for certain exports, which the petitioner disputed. The petitioner had previously succeeded before the Customs Excise and Service Tax Appellate Tribunal (CESTAT) in proving that it was not engaged as a Customs Broker by the offending exporters. The Court found that the petitioner had not filed any shipping bills for the exports in question and was not the Customs Broker for the shipments covered under the 266 shipping bills.

3. Previous Tribunal Findings and Their Implications:
In an earlier round of proceedings, CESTAT had concluded that the petitioner was not the Customs Broker for the exports in question, and therefore, there was no violation of the Customs Brokers Licensing Regulations, 2013 (CBLR, 2013). The Tribunal's findings were not challenged by the respondent. The impugned order, however, was passed in disregard of these findings, which was a significant factor in the Court's decision.

4. Compliance with Customs Brokers Licensing Regulations:
The petitioner was accused of violating multiple regulations under CBLR, 2013. However, the Tribunal had previously determined that the petitioner was not involved in the exports and thus did not violate any regulations. The Court reiterated that the identity of Mr. Prakash Sharma, who was allegedly involved in the offense, was separate from the petitioner company, and his actions could not be attributed to the petitioner.

5. Validity of the Show Cause Notice Dated 24.01.2020:
The Show Cause Notice dated 24.01.2020 was issued based on an earlier Show Cause Notice dated 22.10.2019, which the respondent treated as a new Offence Report. The Court found this to be erroneous, as the Show Cause Notice dated 22.10.2019 arose from the original Offence Report dated 16.02.2015. The Court cited a similar case involving M/s HLPL Global Logistics Pvt. Ltd., where the Tribunal had set aside the revocation order on the same grounds. Consequently, the Court held that the Show Cause Notice dated 24.01.2020 was invalid.

Conclusion:
The petition was allowed, and the impugned order was set aside. The Court emphasized that the proceedings for revocation were initiated beyond the permissible period and that the petitioner had not acted as a Customs Broker for the exports in question. The parties were left to bear their own costs.