2019 (6) TMI 24 - AT - Customs

Tribunal overturns rejection of Customs Broker License renewal, favoring appellant appeal.

M/s. Vee Vee Clearing and Forwarding Pvt. Ltd. Versus The Commissioner of Customs, Chennai-VIII Commissionerate

The Tribunal set aside the impugned order rejecting the renewal of the Customs Broker License, allowing the appeal in favor of the appellant. The decision ... Renewal of CHA License - main contention of the Revenue is that the offence report dated 05.10.2011 was received from the DRI subsequent to raids by both DRI and CBI in the year 2012 and the pending case which was at the stage of prosecution evidence as observed in the impugned order are sufficient reasons for the rejection of renewal of the license - HELD THAT:- These facts are not of any help to the Revenue at this stage because all these took place much prior to the Order-in-Original dated 03.11.2014 and those events definitely are the part of records as these were no new events. The Commissioner who passed the above order is presumed to be aware of the facts on records while passing the above adjudication order dated 03.11.2014. The matter thereafter travelled before this Bench and then to the High Court, and apparently the Revenue having known all these developments, has suffered the above orders. We also cannot go into the assessee satisfying or not, of the conditions or non-disclosure of criminal cases, since, as observed by us in the above paragraph these are no new events but the Revenue was very much aware of it since 2012 and, in any case, these are orders after that and as of now, the issue is pending before the Hon’ble High Court. Moreover, communication dated 30.05.2017 is also clear when the Assistant Commissioner has indicated the approval of the Commissioner of Customs (Chennai-VIII) Commissionerate in renewing Customs Broker License on 26.05.2017, the same also indicates the life of the renewed license which is ten years thereafter. The impugned order cannot sustain - appeal allowed - decided in favor of appellant. Issues:Challenge to rejection of renewal of Customs Broker LicenseAnalysis:1. The appellant challenged the rejection of renewal of Customs Broker License, which had been an ongoing issue with various orders and appeals involved. The initial suspension of the license in 2011 led to subsequent orders revoking and restoring the license, with delays and non-implementation of orders by the Revenue being highlighted.2. The appellant filed a writ petition seeking the High Court's intervention for the implementation of the restoration order. The High Court directed the appellant to appear before the Commissioner of Customs, with any subsequent order subject to the pending appeal before the Division Bench of the Court.3. The impugned Order-in-Original dated 11.09.2017 rejected the renewal of the license based on pending criminal proceedings against the Managing Director and alleged non-disclosure of relevant information. The Revenue's main contention was the pending case as a reason for rejection, but the Tribunal found these facts not sufficient at that stage.4. The Tribunal emphasized that the events leading to the rejection were known to the Revenue since 2012, and the subsequent orders and developments did not justify the rejection of renewal. The communication indicating approval for renewal and the life of the renewed license for ten years were considered significant in this context.5. The Tribunal noted that the High Court's direction made the granting of the license subject to the outcome of the pending appeal before the Division Bench. As the Division Bench had already heard the appeal and reserved judgment, the Tribunal emphasized the need to implement its order without a stay.6. Consequently, the Tribunal set aside the impugned order rejecting the renewal of the license, allowing the appeal in favor of the appellant. The decision was pronounced in the Open Court on 08.03.2019.This detailed analysis covers the issues involved in the legal judgment regarding the challenge to the rejection of renewal of the Customs Broker License, highlighting the key events, arguments, and decisions made by the Tribunal.