2022 (6) TMI 1088 - AT - Customs

Revocation of Customs Broker License - forfeiture of security deposit - levy of penalty - requirement to pass Final Order after considering the Inquiry Report and representation of the CB, within a period of ninety days from the date of submission of the report by the Inquiry Officer - period of fifty nine days from the date of issuance of copy of Inquiry Report to the Appellant/CB has already expired - HELD THAT - It is found that after the impugned order dated 02.11.2021 confirming the suspension of CB Licence under Regulation 16(2) of CBLR, 2018, the department has duly issued Show Cause Notice under Regulation 17(1) of CBLR, 2018 appointing the Inquiry Officer who has also culminated his inquiry into the Inquiry Report as submitted before the Respondent Principal Commissioner and copy thereof has also been duly provided to the Appellant/CB under letter dated 29.01.2022 - In terms of Regulation 17(7) of CBLR, 2018, the Principal Commissioner is required to pass his Final Order after considering the Inquiry Report and representation of the CB, within a period of 90(ninety) days from the date of submission of the report by the Inquiry Officer. A period of 59 (fifty nine) days from the date of issuance of copy of Inquiry Report to the Appellant/CB has already expired and as such, at all probability, the respondent Principal Commissioner is in process of passing the Final Order under Regulation 17(7) ibid in accordance with law and hence at this stage, no fruitful purpose shall serve in deciding the present Appeal on merit by this Tribunal. It is found that substantial justice shall be done by directing the respondent Principal Commissioner of Customs (A A), Customs House, Kolkata to pass the order under Regulation 17(7) of CBLR, 2018 in connection to Show Cause Notice No.08/2021 Commr.(A A) dated 02.11.2021 within a period of 30(thirty) days from today positively after granting reasonable opportunity of representation and hearing to the Appellant/CB in accordance with law. Appeal disposed off.

Summary

Issues:
1. Early hearing of the Appeal challenging the Order-in-Original confirming suspension of CB Licence.
2. Consideration of the Appeal due to the urgency involved.
3. Proceedings under Regulation 17 of CBLR, 2018 and the Show Cause Notice issued.
4. Challenge of a previous Order-in-Original before the Hon'ble High Court, Calcutta.
5. Direction for the respondent Principal Commissioner to pass the Final Order under Regulation 17(7) of CBLR, 2018.

Analysis:
1. The Appellant, a Customs Broker, filed a Miscellaneous Application seeking early hearing of the Appeal against the Order-in-Original confirming the suspension of their CB Licence. The Tribunal allowed the application due to the urgency involved and the short question at hand. The Appeal was taken up for hearing with the consent of the Authorized Representative for the respondent Principal Commissioner.

2. The Ld. Advocate for the Appellant highlighted that a Show Cause Notice proposing revocation of the licence, forfeiture of security deposit, and imposition of penalties had been issued. The basis of the proceeding was an earlier Order-in-Original imposing penalties under the Customs Act, 1962. The Appellant had challenged this previous order before the Hon'ble High Court, Calcutta, which had issued interim orders preventing coercive actions until a specified date.

3. The Tribunal noted that the proceeding under Regulation 17 of CBLR, 2018 had reached its penultimate stage, with the Inquiry Officer submitting the Inquiry Report. The Principal Commissioner was required to pass the Final Order within 90 days of the report submission. As 59 days had already passed since the report was provided to the Appellant, the Principal Commissioner was likely in the process of issuing the Final Order. Therefore, deciding the present Appeal on merit at this stage would not serve a fruitful purpose.

4. Considering the above circumstances, the Tribunal directed the respondent Principal Commissioner to pass the Final Order under Regulation 17(7) of CBLR, 2018 within 30 days from the current date. The Principal Commissioner was instructed to provide a reasonable opportunity for representation and hearing to the Appellant/CB, considering all records and documents before making the decision.

5. The Tribunal disposed of the Appeal in light of the direction given to the Principal Commissioner, emphasizing the importance of substantial justice and adherence to legal procedures in the resolution of the matter.