2015 (7) TMI 849 - AT - Customs

Suspension of Customs House Broker License - Regulation 19 (1) of Customs Brokers Licensing Regulation, 2013 - Misdeclaration of goods - Held that - Offence was committed on 09.01.2014 and the offence report was submitted on 15.10.2014 and the suspension order was issued on the same day under Regulation 19(1) of the said Regulation and also fixed a post decisional hearing on 30.10.2014. But, the Commissioner of Customs had not issued order for continuation of suspension under Regulation 19(2) within the stipulated period. Proviso to Regulation 19 (1) provides that after passing an order for continuing of the suspension, the further procedure thereafter shall be followed in Regulation 20. - investigation report was submitted on 15.10.2014 as revealed from order dated 15.10.2014, issued under Regulation 19(1) and no order was passed within 30 days from the date of the said order under Regulation 19(2). The impugned order dated 03.3.2015 under Regulation 19(2) was issued after about five and half months in a wrong premises that since the investigation of the case is still in progress and no enquiry under Regulation 20 was initiated till date and such order can not be sustained and is liable to be set-aside. - Decided in favour of appellant.

Summary

Issues Involved:
1. Immediate suspension of Customs Broker License under Regulation 19(1) of Customs Brokers Licensing Regulation, 2013.
2. Continuation of suspension under Regulation 19(2) of the same regulation.
3. Issuance of notice under Regulation 20(1) for revocation of license or imposition of penalty.

Detailed Analysis:

1. Immediate Suspension of Customs Broker License under Regulation 19(1):

The appellant's Customs Broker License was suspended by the Commissioner of Customs on 15.10.2014 under Regulation 19(1) of Customs Brokers Licensing Regulation, 2013. The suspension was based on an investigation report dated the same day, following the interception of four containers on 09.01.2014, which were found to contain cigarettes instead of the declared waste paper. The appellant argued that the delay in exercising the suspension power was unjustified since the statements were recorded much earlier in January and February 2014. The Tribunal noted that Regulation 19(1) allows the Commissioner to suspend a license where immediate action is necessary, pending or contemplating an enquiry.

2. Continuation of Suspension under Regulation 19(2):

Regulation 19(2) mandates that the Commissioner must provide a hearing to the Customs Broker within 15 days of the suspension order and pass an order within 15 days from the hearing date. In this case, although a hearing was granted on 30.10.2014, no order was passed within the stipulated period. The continuation order was eventually issued on 03.03.2015, which was significantly delayed by about five and a half months. The Tribunal found this delay to be contrary to the mandatory provisions of Regulation 19(2), rendering the continuation order unsustainable. The Tribunal emphasized that the procedural requirements under Regulation 19(2) are mandatory and must be strictly followed.

3. Issuance of Notice under Regulation 20(1):

Regulation 20(1) requires the Commissioner to issue a notice to the Customs Broker within 90 days from the receipt of the offence report, stating the grounds for revocation of the license or imposition of a penalty. The appellant contended that no such notice was issued even after the lapse of the stipulated period. The Tribunal confirmed that no notice under Regulation 20(1) had been issued to the appellant, further supporting the appellant's case. The Tribunal reiterated that the suspension under Regulation 19 is linked to the subsequent procedure under Regulation 20, and failure to comply with these procedural requirements invalidates the suspension.

Conclusion:

The Tribunal set aside the continuation order dated 03.03.2015 under Regulation 19(2) due to non-compliance with the mandatory time limits and procedural requirements. Consequently, the appeal against the suspension order under Regulation 19(1) was dismissed as infructuous, given the setting aside of the continuation order. The Tribunal underscored the importance of adhering to the statutory timelines and procedures stipulated in the Customs Brokers Licensing Regulation, 2013, to ensure fair and lawful administrative actions.