The Calcutta High Court has held that the timeline Prescribed under Regulation 17(7) of Customs Brokers Licensing Regulations (CBLR), 2018 is mandatory and stayed the order of revocation of the Customs Broker license.
Shaikh and Pandit Agencies Private Limited, the petitioner has challenged the impugned order of revocation passed by respondent no. 1 revoking the petitioner’s Customs Broker License in the exercise of powers under Regulation 17(7) of the Customs Brokers Licensing Regulations, 2018 (CBLR, 2018), allegedly for violation of Regulation 10(d), (m), (n) and (q) of CBLR, 2018.
As a customs broker, the petitioner handled cargo on behalf of different exporters in July/August 2020. Based on an allegation that the exporters do not exist, an interim suspension order was passed based on the alleged offence report.
A reference was made to a GST Enquiry Report where the Exporters were not found to exist at their declared business places. A final suspension order was passed on 8th November 2021 which was challenged by the petitioner before the Tribunal. The Tribunal, the final order of suspension was considered and set aside.
After detailed analysis, the Inquiry Officer found the allegations of violation of Regulation 10(m), (n) and (q) of CBLR, 2018 against the petitioner as “Not proved”. The allegation of violation of Regulation 10(d) was partially proved.
The time to pass the order under Regulation 17(7) of CBLR, 2018 expired on 4th May 2022, i.e., 90 days from the date of submission of the inquiry report. The impugned order revoking the petitioner’s license was passed on 11th July 2022 i.e., beyond the period of 90 days prescribed under the aforesaid Regulation 17(7) of CBLR, 2018.
It was submitted that jurisdiction which has been exercised by the Respondent concerned under Regulation 17(7) of CBLR, 2018 wherein the timeline provided under the CBLR, 2018 and in particular, Regulation 17 for revocation of license has been held to be mandatory.
Petitioner submitted that the judgment of the Bombay High Court was subsequently considered by Delhi High Court in an unreported judgment dated 28.07.2022 in the case of Leo Cargo Services Vs Commissioner of Customs, which concluded that the timelines prescribed under Regulation 17 are mandatory.
A Single member bench comprising Justice Md. Nizamuddin observed that the petitioner has been able to make out a prima facie case for an interim order for the Inquiry Officer himself has given his finding that the allegation of violation of Regulation 10 (m), (n) and (q) of CBLR, 2018 against the petitioner as “not proved”.The Tribunal has already set aside the permanent suspension of the petitioner’s license by its order dated 19th August 2022.
The Court held that the “order of revocation of petitioner’s license dated 11th July 2022 shall remain stayed till 30th April 2023 or until further order, whichever is earlier.”
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