Customs broker licence suspension cannot continue after the inquiry period expires; suspension lifted, inquiry may proceed separately.

Under the Customs Brokers Licensing Regulations, 2013, the prescribed nine-month period for completion of inquiry runs from receipt of the offence report by the licensing authority. Once that period had expired, continued suspension of the Customs House Agent licence could not be sustained merely because the inquiry remained pending. The CESTAT therefore set aside the suspension and directed restoration of the appellant's ability to function as a CHA, while leaving the revenue free to complete the inquiry and take further action in accordance with law.

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Issues: Whether the continued suspension of the Customs House Agent licence could be sustained after expiry of the prescribed period for completion of inquiry under the Customs Brokers Licensing Regulations, 2013.

Analysis: The prescribed time limit for completion of inquiry was nine months from receipt of the offence report by the licensing authority. The time limit had already expired. The circular of the Board also emphasized adherence to the stipulated period for completing the inquiry. In these circumstances, continued suspension could not be maintained merely because the inquiry was still pending.

Conclusion: The continued suspension of the CHA licence was set aside and the Licensing Authority was directed to permit the appellant to function as a CHA. Revenue was left at liberty to complete the inquiry and proceed in accordance with law.

Final Conclusion: The appeal succeeded to the extent that the suspension order was lifted and the appellant was restored to operational status, while the inquiry proceedings were permitted to continue separately.

Ratio Decidendi: Where the statutory time limit for completion of inquiry under the customs broker licensing regime expires, continued suspension of the licence cannot be sustained solely on account of pendency of inquiry.

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