The Delhi High Court (HC) has held that notice for revocation of a Customer Broker license issued beyond the period of ninety days from the offence report is not valid.
HIM Logistics Pvt. Ltd, the petitioner has filed the petition impugning an order dated 31.12.2020 Order-in-passed by the respondent revoking the petitioner’s Customs Broker License (CB License), which was otherwise valid up to 10.10.2028. In addition, the respondent had also directed forfeiture of the security deposit by the petitioner and levied a penalty of ₹50,000/- on the petitioner.
The petitioner claimed that the said order is without jurisdiction and has been issued beyond the period of ninety days from the receipt of the Offence Report, which – according to the petitioner – was received on 16.02.2015.
The Tribunal had found that the petitioner was not engaged as a Customs Broker by the offending exporters and therefore, the question of violation of Customs Brokers Licensing Regulations, 2013 did not arise.
Mr. Kumar, counsel appeared for the respondent, contended that the petitioner has an alternative remedy of an appeal before the Tribunal and the petitioner ought to be relegated to availing alternate remedies.
It was alleged that the petitioner had violated Regulations 11(a), 11(d), 11(j), 11(m) and 11 (n) of Customs Brokers Licensing Regulations, 2013 (CBLR, 2013). Two Directors of the petitioner company were also Directors of another company M/s HLPL Global Logistics Pvt. Ltd. Further, the addresses of the petitioner and HLPL Global Logistics Pvt. Ltd. were the same. In the given circumstances, the Custom Broking License of the petitioner as well as HLPL Global Logistics Pvt. Ltd. were suspended. The suspension was confirmed by the Commissioner of Customs.
The petitioner submitted that one Air Cargo Impex had acted as a Customs Broker for the exports mentioned in the impugned order. It was also claimed that the action of revocation of license was barred by limitation as DRI has forwarded the Offence Report dated 16.02.2015 to the Commissioner of Customs (General), New Custom House proposing revocation of CB License of the petitioner as well as M/s HLPL Global Logistics Pvt. Ltd.
A two-member bench comprising Justice Vibhu Bakhru and Justice Amit Mahajan observed that the proceedings for revocation of the petitioner’s license were commenced beyond the period of ninety days from the date of the Offence Report.
Regulation 17 of the Customs Brokers Licensing Regulations 2018 provides for the procedure for revoking CB License. In terms of Regulation, 17(1) of the said regulations – which is also similarly worded as Regulation 20(1) of the Customs Brokers Licensing Regulations, 2013 – the procedure for revocation of a license is required to be triggered by the issuance of a notice to the Customs Broker within a period of ninety days from receipt of the Offence Report.
While allowing the appeal, the court impugned an order, since the notice was issued beyond the period of ninety days from the Offence Report.
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