Court Sets Aside Late Show Cause Notice, Allows Renewal of Customs Broker License. Respondent Ordered to Promptly Review Application.
Sanco Trans Limited Versus The Commissioner of Customs Sea Port/Imports Customs House
Sanco Trans Limited Versus The Commissioner of Customs Sea Port/Imports Customs House - 2015 (322) E.L.T. 170 (Mad.)
Issues:1. Challenge to show cause notice dated 05.03.2015 under Customs Brokers Licensing Regulations, 2013.
2. Petition for renewal of Customs Broker License based on application dated 09.01.2015.
Analysis:Issue 1: Challenge to Show Cause NoticeThe petitioner challenged a show cause notice dated 05.03.2015 issued by the respondent, alleging violations under Customs Brokers Licensing Regulations, 2013. The notice accused the petitioner of attempting to clear imported goods at a lower value to evade duties, potentially causing a revenue loss to the government. The respondent suspended the petitioner's license invoking Regulation 91 of CBLR, 2013. The petitioner contended that the notice was issued beyond the prescribed period of 90 days from the offense report, as required by Regulation 22(1). The petitioner argued that the notice violated Regulation 20(1) and relied on past court decisions to support their case. The court examined the legal provisions under Regulation 20 and Regulation 22, emphasizing the importance of timely issuance of show cause notices. Citing precedent, the court held that the notice issued after the statutory period lacked jurisdiction and set it aside, allowing for the renewal of the petitioner's license.
Issue 2: Petition for License RenewalSimultaneously, the petitioner sought a Writ of Mandamus in W.P.No.7189 of 2015 to direct the respondent to renew their Customs Broker license based on an application dated 09.01.2015. The petitioner had filed for license renewal before the expiration of the ten-year tenure, but the respondent did not respond. The court noted that with the setting aside of the show cause notice, there was no impediment for the respondent to renew the petitioner's license in accordance with Regulation 9(1) of CBLR, 2013. The court directed the respondent to consider the renewal application within six weeks of the court order, emphasizing compliance with the law.
In conclusion, the court allowed both writ petitions, setting aside the show cause notice and directing the renewal of the petitioner's Customs Broker license based on the application submitted earlier. The judgment highlighted the importance of adherence to statutory timelines in issuing show cause notices under the relevant regulations and emphasized the need for procedural fairness in regulatory actions related to Customs Broker licensing.