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TMI Blog2015 (7) TMI 849X X X X Extracts X X X X X X X X Extracts X X X X ..... e case, in brief, are that appellant is holding Customs Broker Licence, under Regulation 2013. On 09.01.2014, the Custom officers intercepted four containers imported in the name of M/s. Sun Enterprises declared as Waste Paper OCC and it was found cigarettes and the Bill of Entry dated 09.1.2014 was filed by the appellant. The goods were seized by the Customs authorities and statements of the importer and appellant were recorded in the month of January, February and October 2014. As per investigation report dated 15.10.2014, the Commissioner of Customs suspended the Customs Broker License by order dated 15.10.2014 with immediate effect, under Regulation 19(1) of the Regulation 2013. The Commissioner of Customs granted personal hearing on 30.10.2014 to the appellant, who appeared before the Commissioner. No further order was passed by the Commissioner within the stipulated period under Regulation 19 (2) of the said Regulation. Hence, on 15.01.2015, the appellant filed Appeal against order dated 15.10.2014 before this Tribunal, which is listed today. Thereafter, the Commissioner by order dated 03.3.2015 directed continuation of suspension order till further orders under Regulation 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pose of issuing offence report on 15.10.2014. In any event, we find that offence report was submitted on 15.10.2014 against the import on 09.01.2014. The Commissioner issued suspension order immediately on 15.10.2014. It has also granted personal hearing within 15 days, which was attended by the appellant. But, no order was passed within 15 days from the date of hearing to the appellant as required under Regulation 19 (2) of the said Regulation. After filing of the appeal against the order under Regulation 19(1) of the Regulation before Tribunal, the Commissioner passed the order on 03.3.2015 under Regulation 20 (2). 6. For the purpose of proper appreciation of the case, we reproduce Regulation 19 and 20 of Regulation 2013, as under:- "19. Suspension of licence. - (1) Notwithstanding anything contained in regulation 18, the [Principal Commissioner or Commissioner] of Customs may, in appropriate cases where immediate action is necessary, suspend the licence of a Customs Broker where an enquiry against such [broker] is pending or contemplated. (2) Where a licence is suspended under sub-regulation (1), the [Principal Commissioner or Commissioner] of Customs shall, within fifteen da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng. (5) At the conclusion of the inquiry, the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, shall prepare a report of the inquiry and after recording his findings thereon submit the report within a period of ninety days from the date of issue of a notice under sub-regulation (1). (6) The Commissioner of Customs shall furnish to the Customs Broker a copy of the report of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, and shall require the Customs Broker to submit, within the specified period not being less than thirty days, any representation that he may wish to make against the said report. (7) The Commissioner of Customs shall, after considering the report of the inquiry and the representation thereon, if any, made by the Customs Broker, pass such orders as he deems fit either revoking the suspension of the license or revoking the licence of the Customs Broker or imposing penalty not exceeding the amount mentioned in regulation 22 within ninety days from the date of submission of the report by the Deputy Commissioner of Customs or Assistant Commissioner of Customs, under sub-regulation (5): ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as granted on 30.10.2014, but, no order was passed within 15 days. After about five and half months, the impugned order was passed and there is no indication that the matter was heard by the Commissioner. The finding of the Commissioner is as under:- "3. Now, the suspension of the CB Licence has been reviewed by me and considered the gravity of offence and since the investigation of the case is still in progress, I, hereby order for continuation of the suspension of the CB Licence No. KDL/CHA/R/09/2011 dated 10.02.2011 valid up to 09.02.2021 issued to M/s. Saarthee Shipping Co., Gandhidham, in exercise of powers conferred under Regulation 19 (2) of CBLR, 2013 until further order." 10. We are unable to accept the finding of the Commissioner for the reasons, the Commissioner in his earlier Order dated 15.10.2014 issued under Regulation 19(1), observed that the said order was issued on the basis of investigation report dated 15.10.2014. Further, the Tribunal in the case of Manjunatha Shipping Services Limited vs. Commissioner of Customs, Chennai, vide Final Order No. 40461/2013 dated 10.10.2013 observed that there is distinction between the investigation to unearth evidence required ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. CC, CE & ST, Hyderabad - 2013 (291) ELT 298 (Tri. Bang.), held that time-limit of 15 days under Regulation 20 (3) of old Regulation and Regulation 19 (2) of Regulation 2013, is mandatory. Non-passing of the order within prescribed period is in clear violation of Regulation vitiated ex-parte order. Relevant portion of the said decision is reproduced:- "Regulation 20(3) of the CHALR, 2004 is reproduced below : "Where a licence is suspended under sub-regulation (2), notwithstanding the procedure specified under Regulation 22, the Commissioner of Customs may, within fifteen days from the date of such suspension, give an opportunity of hearing to the Customs House Agent whose licence is suspended and may pass such order as he deems fit either revoking the suspension or continuing it, as the case may be, within fifteen days from the date of hearing granted to the Customs House Agent." (underlining added) On a comparison of the underlined sentences, we observe that the Circular, by adding the clause "where it is possible to do so", liberalised the sub-regulation with a departmental bias. The time limit of fifteen days has to be considered as mandatory as per Regulation 20(3). ..... X X X X Extracts X X X X X X X X Extracts X X X X
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