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2019 (7) TMI 347 - HC - CustomsRevocation of Customs Broker License - forfeiture of the entire amount of security deposit - inordinate delay in completing the inquiry proceedings - HELD THAT - This Court in THE PRINCIPAL COMMISSIONER OF CUSTOMS (GENERAL) MUMBAI VERSUS UNISON CLEARING PVT. LTD., AND OTHERS. 2018 (4) TMI 1053 - BOMBAY HIGH COURT held that the timeline provided in Regulation 22 of the CHLR, 2004 were directory in nature and not mandatory. Consequently, it would be open to the Revenue to explain the delay in passing the orders of suspension/revocation under Regulation 22 of CHLR 2004. The appeal is restored to the Tribunal for passing fresh order after taking note of the fact that timeline provided in Regulation 22 of CHLR, 2004 is merely directory - Appeal allowed.
Issues:
- Appeal against the order of the Customs, Excise and Service Tax Appellate Tribunal revoking a Customs Broker License and forfeiting the security deposit due to delay in inquiry proceedings. Analysis: 1. The appellant challenged the Tribunal's order revoking the Customs Broker License and forfeiting the security deposit, citing inordinate delay in completing the inquiry proceedings. The main legal question raised was whether the Tribunal was justified in setting aside the revocation and forfeiture on the grounds of delay. 2. The High Court admitted the appeal based on the substantial question of law presented by the appellant regarding the Tribunal's decision to revoke the license and forfeit the security deposit due to delay in the inquiry proceedings. 3. The issue at hand was found to be similar to a previous decision of the Court in Principal Commissioner of Customs (General), Mumbai v. Unison Clearing P. Ltd. 2018 (361) E.L.T. 321. Both parties agreed that the present matter was concluded by the decision in the aforementioned case, leading to the disposal of the appeal at this stage. 4. The Tribunal's order dated 1st April, 2017, which set aside the revocation of the Customs Broker license and forfeiture of the security deposit, was based on the violation of Regulation 22 of the Customs House Agents Licence Regulation, 2004 (CHLR, 2004) due to undue delay in the disciplinary proceedings against the respondent. 5. The Court referred to the decision in Unison Clearing P. Ltd., where it was held that the timelines provided in Regulation 22 of CHLR, 2004 were directory and not mandatory. Consequently, the Revenue could provide explanations for the delay in passing orders for suspension or revocation under the regulation. 6. In line with the decision in Unison Clearing P. Ltd., the High Court ruled in favor of the Revenue, setting aside the impugned order of the Tribunal and restoring the appeal for fresh consideration. The Court emphasized that the timeline provided in Regulation 22 of CHLR, 2004 was merely directory, and the Tribunal should consider the Revenue's explanation for the delay in revocation proceedings. 7. The Court directed that the Tribunal should reconsider the appeal in light of the fact that the timeline in Regulation 22 of CHLR, 2004 is not mandatory. The Revenue was given the opportunity to provide explanations for the delay in completing the revocation proceedings against the respondent. 8. The respondent's counsel agreed that the Revenue would not enforce the previous order passed by the Commissioner of Customs (General) until the Tribunal made a fresh decision on the appeal, following the High Court's order. 9. Consequently, the appeal was allowed, and no costs were awarded in the matter.
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