2017 (7) TMI 510 - HC - Customs

Court Orders Renewal of License, Urges Timely Adjudication

CMA CGM Agencies (India) Pvt. Ltd. Versus The Commissioner of Customs (Import), The Deputy Commissioner of Customs (Import)

The High Court directed the Department to renew the petitioner's license for one year from 05.07.2016 and complete the adjudication process within that ... Renewal of CHA licence - the petitioner's contention is that the license is liable to be renewed for a full term of 10 years in terms of the Regulations - Held that: - this Court, at this juncture, does not propose to render any finding on this aspect as the SCN has been adjudicated and orders are to be passed coupled with the fact that the license has since been renewed for a period of six months by order dated 03.7.2017 - petition dismissed - decided against petitioner. Issues:Renewal of license under Customs House Agents Licensing Regulations, 2004 and Customs Brokers Licensing Regulations, 2013; Denial of renewal for a full term of 10 years due to pending show cause notice since 2012.Analysis:The petitioner sought a writ of mandamus to direct the respondents to renew their license under the Customs regulations to continue their business activities. The Department had temporarily renewed the Streamer Agent License until 04.01.2018, but the petitioner argued for a full 10-year renewal. The show cause notice from 2012 regarding short landing of cargo was pending adjudication, affecting the renewal process. The petitioner had previously filed a similar petition in 2015, leading to a one-year renewal. The High Court noted that the pendency of a show cause notice should not be the sole reason for temporary renewal and directed the Department to renew the license for one year from 05.07.2016 and complete the adjudication process within that period.The Court highlighted that seeking relief through a writ petition should not imply misconduct on the petitioner's part. The Department's reasoning for not granting a longer renewal was deemed unsustainable. The Court ordered the renewal for one year and completion of the show cause notice adjudication. Both directions were complied with, and the license was renewed until 04.07.2017. Subsequently, the petitioner filed a new writ petition, resulting in a further six-month renewal until 04.01.2018. The Court refrained from deciding on the full 10-year renewal due to the ongoing adjudication and the recent renewal orders.The final decision disposed of the writ petition, directing the Department to finalize the show cause notice adjudication within six weeks. The Court left open the possibility of adjudicating the petitioner's entitlement to a full 10-year license renewal in the future. No costs were awarded, and the related miscellaneous petition was closed. The judgment emphasized the importance of fair renewal processes and the need for timely adjudication of pending matters to ensure business continuity.