2020 (8) TMI 744 - AT - Customs

Suspension of CHA License - It was alleged that the appellant had abetted a syndicate in presenting false export invoices, packing list and related documents for showing exports on paper only without physically exporting the goods to gain export benefits - HELD THAT - It is seen that Regulations 16 mandates that the hearing will be granted within 15 days of the order of suspension and Regulation 17 prescribes that the notice will be issued within 90 days of the receipt. In the instant case while the suspension order on 26/04/2019. The personal hearing was granted on 16/05/2019. The time limit prescribed in Regulation 16 was not followed. Similarly, while the offence report was received on 10.04.2019 but no SCN has been issued till 19.02.2020. Consequently, regulation 17(1) was also violated. The continuation of suspension order cannot be upheld - appeal allowed.

Summary

Issues:
Appeal against continuation of suspension of Custom Broker license.

Analysis:

1. Regulation 10 of CBLR and Delay in Decision:
The appellant challenged the suspension of their license, arguing that the exact sub-regulation of CBLR that was violated needed to be identified. The appellant contended that the decision of suspension was delayed, as the letter from the Assistant Commissioner was dated 10.04.2019, while the suspension was imposed on 26.04.2019. The appellant highlighted the requirement for post-decision personal hearing, which was granted on 16.05.2019. The appellant pointed out instances where suspension decisions were quashed due to delays. The Tribunal noted the importance of identifying the specific offense and sub-regulation violated and the necessity of timely actions in such cases.

2. Regulations 16 & 17 of CBLR 2018 - Procedural Compliance:
The Tribunal examined Regulations 16 and 17 of the CBLR 2018, which govern the suspension of a Customs Broker license and the procedure for revoking a license or imposing penalties. Regulation 16 allows for the suspension of a license where immediate action is necessary, pending an inquiry. It mandates a hearing within 15 days of suspension. Regulation 17 requires issuing a notice within 90 days of receiving an offense report, allowing the broker to submit a defense statement. In this case, the suspension order was issued on 26/04/2019, with a personal hearing granted on 16/05/2019. However, no show-cause notice was issued until 19/02/2020, violating Regulation 17. The Tribunal found that the timelines prescribed in Regulations 16 and 17 were not adhered to, leading to the setting aside of the continuation of the suspension order and allowing the appeal.

3. Decision and Conclusion:
After considering the arguments presented by both parties, the Tribunal set aside the order for the continuation of the suspension of the Custom Broker license. The Tribunal emphasized the importance of procedural compliance and timely actions in such matters. The appeal was allowed, and the decision was pronounced in open court on 25.08.2020.