Tribunal rules suspension of Custom Broker license cannot exceed 9 months

The Tribunal set aside the order for the continuation of the suspension of the Custom Broker license, ruling that the suspension cannot be prolonged beyond the stipulated 9-month period for inquiry proceedings under the Custom Broker Licence Regulations, 2013. The appeal was allowed, granting the Revenue the liberty to proceed with the inquiry proceedings.

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Issues involved:
- Continuation of suspension of Custom Broker license beyond the stipulated period of inquiry proceedings under Custom Broker Licence Regulations, 2013.

Analysis:
The appeal in this case was made against the Order-in-Original No. 17/2015-16 dated 28.10.2015, where the Principal Commissioner of Customs (General), Mumbai-I ordered the continuation of the suspension of the Custom Broker license passed by Order No. 13/2015 dated 13.8.2015. The appellant argued that the inquiry proceedings had not been concluded even after almost a year since the suspension, which exceeded the overall 9-month period for completing inquiry proceedings as provided in the Custom Broker Licence Regulations, 2013 (CBLR). The appellant relied on various judgments to support their argument, emphasizing that the suspension should not continue indefinitely if the inquiry proceedings are not completed within the specified timeframe.

The Revenue, represented by the learned AC (AR), reiterated the findings of the impugned order. However, the Tribunal, comprising Shri Ramesh Nair and Shri Raju, Members, carefully considered the submissions from both sides. They noted that the alleged offense related to the Bill of Entry was reported on 7.4.2015, the suspension order was issued on 13.8.2015, but the inquiry proceedings remained unresolved even after nearly a year. The Tribunal referred to previous decisions, including Unison Clearing Pvt. Ltd. Vs. Commissioner of Customs (General), Mumbai 2015 (329) ELT 269 and Durga Clearing Pvt. Ltd. Vs. Commissioner of Customs (General), Mumbai, which supported the view that the suspension of the Custom Broker license cannot be prolonged beyond the 9-month period for inquiry proceedings.

Based on the consistent view taken in previous judgments, the Tribunal concluded that the continuation of the suspension of the Custom Broker license was not permissible. Therefore, the impugned order was set aside, and the appeal was allowed. The Revenue was granted the freedom to proceed with the inquiry proceedings under the Custom Broker Licence Regulations, 2013. The judgment was pronounced in court on 26.08.2016.

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