2019 (5) TMI 764 - HC - Customs

High Court rules in favor of petitioner in Customs Broker License application rejection case under Regulation 7(1)

The High Court ruled in favor of the petitioner in a case involving the rejection of their Customs Broker License application under the Customs Broker ... Grant of Customs Broker Licence - Interpretation of statute - Regulation 7(1) of CBLR, 2013 - HELD THAT:- It is clear from the said provision that after passing written as well as oral examination for obtaining the licence in Form-B, the candidate is required to deposit ₹ 5,000/- fee and on deposit of such fee, the Commissioner of Customs shall issue a Licence within a period of two months. The respondents are giving wrong interpretation for those applicants who have passed the examination and did not submit an application for grant of licence within a period of two months. The examinations passed under Regulations 1984 and 2004 have been treated to be a valid by virtue of proviso-2 of Regulation 6(1) of CBRL,2013 hence there can't be a two months period for submitting the applicant for grant of licence. The applicant is not required to apply for grant of licence under Regulation 7. He is only required to deposit the fees of ₹ 5,000/- because an application for grant of licence has already been submitted under Regulation 4 of Regulation, 2013 and thereafter, the candidate is required to appear in the examination. After declaration of the result, the candidate is required to deposit the fees of ₹ 5,000/- for issuance of licence. The Language of Regulation 7 is plain and simple and according to which, the Commissioner of Customs shall grant a licence in Form-B within a period of two months on payment of fees of ₹ 5,000/- by an applicant who has passed the oral examination. The Commissioner is liable to grant the licence in Form -B within two months from the date of deposit of fee ₹ 5000/- by the applicant who has passed the oral examination. The applicant is not required to submit an application for grant of licence under Regulation 7(1). Petition allowed - The respondents are directed to issue Customs Broker Licence to the petitioner forthwith. Issues:1. Rejection of Customs Broker License application under CBLR, 2013.2. Interpretation of Regulation 7(1) of CBLR, 2013 regarding the time limit for license issuance.Issue 1: Rejection of Customs Broker License application under CBLR, 2013:The petitioner filed a petition due to the rejection of their application for a Customs Broker License under the Customs Broker License Regulation, 2013 (CBLR, 2013). The rejection was based on the grounds that the application was not submitted within the specified two-month period from the declaration of examination results. Despite multiple attempts and submissions, the petitioner's requests were consistently denied, leading to an appeal to the CESTAT, which was dismissed as not maintainable. The High Court was approached through a writ petition challenging the rejection of the license application.Issue 2: Interpretation of Regulation 7(1) of CBLR, 2013 regarding the time limit for license issuance:The main contention between the parties revolved around the interpretation of Regulation 7(1) of CBLR, 2013. The regulation stipulates that the Commissioner of Customs must grant a license in Form B to an applicant who has passed the oral examination within two months of the declaration of results upon payment of the prescribed fee. The petitioner argued that the two-month period for license issuance was not applicable to applicants who had already passed the necessary examinations under previous regulations, as per the proviso in Regulation 6(1) of CBLR, 2013. The petitioner contended that the applicant only needed to deposit the fee and not submit a separate application for license issuance under Regulation 7(1).The Court held that the interpretation provided by the respondents was incorrect. It was clarified that applicants who had passed the examinations under previous regulations were not bound by the two-month period for submitting an application for license issuance under Regulation 7(1). The Court emphasized that the language of the regulation was clear, and the Commissioner was obligated to grant the license within two months of fee payment by the applicant who had passed the oral examination. Consequently, the Court allowed the petition, quashed the impugned orders, and directed the respondents to issue the Customs Broker License to the petitioner promptly.