2024 (6) TMI 783 - AT - Customs

Proceedings against Customs Broker - various benefits available to exporters, such as drawback, refunds and other incentives, had been misappropriated by submission of purportedly bogus invoices from suppliers - HELD THAT - There are nothing on record to conclude that this delay is attributable to deliberate acts on the part of the appellant; the impugned order is silent about the date on which the copy of the enquiry report, with communication of intent of acceptance thereof, had been conveyed to the appellant herein and neither is there any record of the correspondence leading to grant of personal hearing. More importantly, it is the failure, or disinclination, to even place narration of events leading from the last explained delay on record that appears to convey the non-applicability of time-lines to the licencing authority which is of concern. Doubtlessly, the decision in re Unison Clearing Pvt Ltd has not affirmed that the time-lines are mandatory in every situation but, at the same time, there is no affirmation either that, irrespective of circumstances, it is only directory. The appellant herein could not have been prescient to anticipate delay in concluding the proceedings. It was incumbent upon licencing authority to offer justification; the absence thereof jeopardizes the outcome. It would, however, be inappropriate to set aside the findings for insufficiency in justification of delay. The impugned order is set aside - matter remanded back to the Commissioner of Customs (General) to incorporate justification, if any, and pass orders afresh in accordance with jurisdictional competence, or otherwise, in consequence. Petition allowed by way of remand.

Summary

Issues Involved:
Proceedings against customs broker for misappropriation of benefits available to exporters through submission of bogus invoices.

Comprehensive details of the judgment for each issue involved:

1. Alleged Misappropriation of Benefits:
- M/s D P Logistics Pvt Ltd, holder of customs broker license, faced proceedings for their role in filing shipping bills with misappropriated benefits.
- The order revoked the license, directed forfeiture of security deposit, and imposed a penalty under Customs Brokers Licensing Regulations, 2018.
- Charges were based on breach of various regulations under the Customs Brokers Licensing Regulations, 2018.

2. Timelines and Delay in Enquiry:
- The appellant argued that timelines specified in the regulations were violated, affecting the enquiry process.
- The delay in completion of the enquiry was attributed to non-availability of documents and cross-examination of the exporter.
- The delay in finalization of proceedings beyond the stipulated time was a matter of concern.

3. Legal Precedent and High Court Decision:
- Reference was made to a High Court decision regarding the mandatory nature of timelines in the regulations.
- The High Court emphasized the need for justifying delays in enquiry proceedings to ensure expeditious completion.

4. Judicial Review and Remand:
- The licensing authority acknowledged the delay in enquiry proceedings but found it reasonable and not fatal to the outcome.
- The judgment highlighted the importance of justifying delays and ensuring compliance with principles of natural justice.
- The impugned order was set aside, and the matter remanded back to the Commissioner of Customs for incorporating justifications for the delay.

The judgment focused on the procedural aspects of the case, emphasizing the need for adherence to timelines, justification of delays, and ensuring fairness in the enquiry process. It highlighted the significance of legal precedents in guiding such cases and the importance of accountability in regulatory proceedings.