9911796707
TMI Blog2024 (7) TMI 1008X X X X Extracts X X X X X X X X Extracts X X X X ..... horised decision maker is shown as Shri Shaan Basha and the signature of the authorised signatory is by Shri Shaan Basha himself on behalf of Zain Trading and it is also on record that the Managing Partner Shri Benny Francis admitted to the fact that they had not verified the identity of the exporter or functioning of the exporter at the declared address nor they contacted the exporter - The Commissioner in the impugned order has also noted that the appellant had been punished number of times for violation of the CBLR Regulations and specifically found that he had filed Bills of Entry for export of Red Sander Logs knowing well it is a prohibited item. There are no reason to disagree with the Commissioner s order in revoking the license. However, taking into consideration the fact that the appellant has 23 employees working all over the branches, the revocation of the license has affected the employees of their source of livelihood; the license has been revoked on 15.12.2022 and thus for almost 18 months the livelihood of these employees has suffered - Considering these facts and the fact that the appellant cannot be disabled permanently so as to deprive him and his employees their ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ents but to verify the authenticity only through documents, having done so, there is no question of violation of Regulation 10 (n) as claimed by the Revenue. The learned counsel also submits that where there is no evidence of complicity in the illegal importation of goods or wrong intent or prior knowledge about the violation the penalty cannot be imposed. It is further claimed that they have 23 employees working all over the branches and the revocation of the licence would affect the livelihood of large number of people and therefore, requests for setting aside the revocation of the licence. The counsel relies on the following judgments: (i) Hon ble High Court of Madras in the matter of Masterstroke Freight Forwarders P Ltd. vs. CC (I), Chennai -I: 2016 (332) E.L.T 300 (Mad.) (ii) M/s. Overseas Air Cargo Services vs. Commissioner of Customs (General) New Delhi: 2016 (240) ELT 119 (Del.) (iii) ESSAR Power Gujarat Ltd. vs. CC, Jamnagar (Prev): 2023 (384) ELT 436 (Tri.-Ahmd.) (iv) Manjith Singh vs. C.C (Import), Nhava Sheva: 2015 (323) E.L.T 377 (Tri.-Mumbai) 4. The learned Authorized Representative on behalf of the Revenue submits that the appellant is a habitual offender and many t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er affording an opportunity of hearing to the Customs broker, whose licence is suspended, the Commissioner of Customs is authorised to pass such order as he deems fit either revoking the suspension or continuing it, as the case may be. However, when the Commissioner passes an order for continuing the suspension, it is imperative for him to follow the procedure under [Regulation] 20. The procedure for revocation of licence is provided in Regulation 20 and the issue involved before us in the present set of appeals is whether the time frame prescribed in the said Regulation is mandatory or directory. If the time frame is mandatory then the necessary consequences of not completing the inquiry within the time stipulated would result into restoration of a licence and declaring the action to revoke the licence as being invalid. If it is construed as directory, then even on expiry of period of 90 days, the procedure for revocation of licence which is initiated would continue and mere failure to adhere to the time line prescribed in the Regulation would not confer a positive benefit in favour of the Customs Broker. 11. While construing the provision contained in [ Regulation ] 20 of the reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f suspension of licence with immediate effect contemplating or pending an inquiry. The imminence of the action, postponement of the opportunity of hearing that Regulation 19 provides for post-decisional hearing when an action is taken to suspend the licence. Thus, the regulation aims at securing interest of the Customs house agent and also the revenue. Thus, the urgency and expediency of the action permits the Authority to step in immediately or with promptitude. A balancing of interests is achieved by ensuring prompt action and avoiding undue delay in taking it to its logical conclusion. The question therefore is whether non-adherence to the time frame as mentioned in Regulation 20 would be so strictly construed so as to result in declaring initiation of action itself invalid, if that is not adhered to. There might be circumstances and situations which are not within the control either of the Customs house agent or the Revenue. It is possible that a Customs house agent is unable to attend the proceedings on account of his ill-health or any other unforeseen contingency, resultantly, the proceedings are required to be postponed by extending the date for submitting his written statem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is reasonable . This is the only way by which the provisions contained in Regulation 20 can be effectively implemented in the interest of both parties, namely, the Revenue and the Customs House Agent. 5.1 Based on the above observations, the Hon ble High Court of Karnataka held that A reading of Regulation 17 of the CBLR, 2018 makes it very clear that though there is a time limit stipulated in the Regulations to complete a particular act, non-compliance of the same would not lead to any specific consequence. Accordingly held that the provisions of 17 of CBLR 2018 is required to be considered as directory and not mandatory. In view of the above jurisdictional High Court observations, we hold that the show-cause notice is not time barred. 5.2 On perusal of the Know Your Customer (KYC) form, we find that the name of the authorised decision maker is shown as Shri Shaan Basha and the signature of the authorised signatory is by Shri Shaan Basha himself on behalf of Zain Trading and it is also on record that the Managing Partner Shri Benny Francis admitted to the fact that they had not verified the identity of the exporter or functioning of the exporter at the declared address nor they co ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
