2023 (4) TMI 881 - HC - Customs

Condonation of delay in filing appeal - Sufficient cause for delay exists or not - Punitive measures imposed on the respondent s Customs Broker License under the Customs Broker Licensing Regulations, 2013 reduced to forfeiture of the security deposit - failure to verify the antecedents and correctness of the Import-Export Code No., identity of his client and functioning of his client at the declared address - over-valuation of consignment imported for making fraudulent drawback claims. Whether the delay in filing the same is required to be condoned? - HELD THAT - The application seeking condonation of delay is bereft of any particulars. Apart from making a bald statement that the impugned order was misplaced because the office of the counsel of the appellant was under renovation and was found subsequently, no further details are provided - This Court finds it difficult to accept the aforesaid explanation. It is also not possible for this Court to countenance the procedure, where the Department is clueless whether an appeal has been filed or not; and apparently, remains sanguine once instructions to file have been given to the counsel. It is also relevant to note that there is a substantial delay of 109 days in re-filing the appeal as well. It is stated that after the appeal was filed, the appeal memo was returned by the Registry with certain objections. The delay in re-filing was due to the fact that some of the appeal papers got misplaced which included the affidavit accompanying the appeal . In the process of locating the appeal papers, there occurred some delay in re-filing the appeal with the Registry of this Court - it is also seen that there has been an inordinate delay in the prosecuting the present appeal as well. The notice in the present appeal was issued on 18.12.2019, however, the respondent could not be served. The hearings were adjourned thereafter on account of truncated functioning of the Court due to the outbreak of Covid-19. The present appeal was listed on 25.04.2022, however, none appeared for the appellant on that date. This Court finds no reason to condone the delay in filing the appeal or re-filing the same - Appeal dismissed.

Summary

Issues involved:
The appeal under Section 130(2A) of the Customs Act 1962 regarding punitive measures imposed on a Customs Broker License, delay in filing the appeal, delay in re-filing the appeal, and inordinate delay in prosecuting the appeal.

Appeal against Punitive Measures:
The Revenue filed an appeal against an order reducing punitive measures on the respondent's Customs Broker License to forfeiture of the security deposit. Allegations included failure to verify antecedents, correctness of Import-Export Code, and overvaluation of imported consignment for fraudulent claims. The appellant argued that imposing only forfeiture of security was impermissible, citing a previous decision. The Court noted the delay in filing the appeal and ultimately dismissed it due to lack of specific explanations for the delay.

Delay in Filing the Appeal:
The appeal was filed 307 days late, with the explanation citing misplacement of the impugned order due to the counsel's office renovation. The Court found the explanation lacking in particulars and criticized the Department's cluelessness about the appeal status. Despite a substantial delay in re-filing as well, the Court highlighted the need for diligence and commitment in government duties. Quoting a Supreme Court case, the Court emphasized that condonation of delay should not be an anticipated benefit for government departments.

Inordinate Delay in Prosecuting the Appeal:
The Court noted delays in serving notices to the respondent, adjournments due to Covid-19, and lack of steps taken by the appellant for service. Despite multiple attempts to serve notice, including issues with the correct address, no progress was made. Consequently, the Court found no reason to condone the delays and rejected the applications seeking condonation. As a result, the appeal was dismissed.