SCN for Revocation of License must be Issued within 90 Days from Date of Offence Report as Per Regulation 20 of CBLR: CESTAT [Read Order]

The Chennai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the show cause notice for revocation of license must be issued within 90 days from the date of offense report as per the regulations 20 of the Customs Brokers Licensing Regulations, 2013. 

Trade Wings Logistics India Pvt. Ltd, the appellant assessee appealed against the order passed by the Commissioner for ordering the revocation of the Licence and forfeiting the security deposit and imposition of penalty. 

J. Ragini, the counsel for the assessee contended that as per Regulation, 20, the Show Cause Notice ought to have been issued to the appellant within 90 days from the date of the offense report, and in the present case the Show Cause Notice had been issued much later and therefore the order of revocation for a license was vitiated and cannot be sustained. 

Rudra Pratap Singh, the counsel for the department relied on the decisions made by the lower authorities and contended that the goods were mis-declared concerning the quantity and value with an intent to avail excess drawback. 

The Bench observed that the revocation of license was an extreme punishment and had to be resorted to in respect of serious violations with mala fide intention by the Customs broker and this case does not warrant such a harsh punishment as the assessee did not know the variation in quantity and quality of the goods that are to be exported. 

Also observed that the show cause notice was issued beyond the stipulated time limit of 90 days bu the department.

The two-member bench comprising Sulekha Beevi C.S (Judicial) and Vasa Seshagiri Rao (Technical) quashed the order passed by the Commissioner while allowing the appeal filed by the assessee. 

To Read the full text of the Order CLICK HERE

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