Petitioner entitled to post-decisional hearing & speaking order. Show cause notice for license revocation.

Logic Transware India Pvt. Ltd. Versus Commissioner of Customs

Logic Transware India Pvt. Ltd. Versus Commissioner of Customs - 2014 (302) E.L.T. 228 (Del.) Issues Involved:
1. Violation of principles of natural justice.
2. Scope and applicability of Regulation 21 of the Customs House Agents Licensing Regulations, 2004.
3. Requirement of post-decisional hearing.
4. Issuance and service of show cause notice for revocation of licence.

Detailed Analysis:

1. Violation of Principles of Natural Justice:
The petitioner argued that the impugned order dated 24th January 2013, prohibiting them from transacting business under Regulation 9(2) of the Customs House Agents Licensing Regulations, 2004, was issued without a hearing or show cause notice, thereby violating the principles of natural justice. The court acknowledged that the principles of natural justice require that the person likely to be adversely affected by an action should be given notice and a reasonable opportunity to be heard. The court referred to the judgment in International Cargo Services versus Union of India, which emphasized the necessity of pre-decisional hearing unless emergent action is required.

2. Scope and Applicability of Regulation 21:
The petitioner contended that the prohibition under Regulation 21 should only apply to one or more sections of the Customs House and not the entire Commissionerate. The respondents, however, argued that Regulation 21 is independent and does not require the procedure prescribed in Regulation 22. The court examined Regulations 20, 21, and 22, noting that Regulation 21 allows the Commissioner of Customs to prohibit any Customs House Agent from working in one or more sections of the Customs Station if obligations under Regulation 13 are not fulfilled. The court highlighted that Regulation 21 does not explicitly require the procedure of Regulation 22 to be followed.

3. Requirement of Post-Decisional Hearing:
The court emphasized the need for post-decisional hearing in cases of emergent action under Regulation 21, drawing parallels with Regulation 20(2), which allows immediate suspension of a licence pending enquiry. The court cited the judgment in International Cargo Services, which held that post-decisional hearing is necessary to ensure compliance with the principles of natural justice. The court also referred to Circular No. 9/2010-Customs, which mandates post-decisional hearing in cases of immediate suspension under Regulation 20(2).

4. Issuance and Service of Show Cause Notice for Revocation of Licence:
During the hearing, it was noted that a show cause notice for revocation of the petitioner's licence had been issued by the Commissionerate at Pune. The petitioner's counsel stated that they had not received the notice. The court facilitated the service of the show cause notice in the court and directed the petitioner to file a reply within thirty days. The court further directed the competent authority at Pune to dispose of the show cause notice within thirty days of receiving the reply. If the authority failed to do so, the prohibition order would be deemed suspended/revoked.

Conclusion:
The court concluded that the petitioner is entitled to a post-decisional hearing and directed the respondents to pass a speaking order after such a hearing. The court also facilitated the service of the show cause notice for revocation and set a timeline for its disposal. The writ petition was disposed of with these directions, ensuring adherence to the principles of natural justice and procedural fairness.