Time limit for notice under Customs Brokers Licensing Regulations is mandatory. License suspension invalid if not issued within 90 days. Appeal allowed, license reinstated.

The Tribunal held that the time limit for issuing a notice under regulation 17(1) of the Customs Brokers Licensing Regulations, 2018 is mandatory. As the notice was not issued within 90 days, the suspension of the Customs Broker License was deemed invalid, and the license automatically revived. The appeal was allowed, the suspension orders were set aside, and the appellant's Customs Broker License was reinstated.

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Issues Involved:
1. Validity of the continuation of the suspension of the Customs Broker License under regulation 16(2) of the Customs Brokers Licensing Regulations, 2018.
2. Whether the issuance of a notice under regulation 17(1) within 90 days from the date of receipt of the offence report is mandatory or directory.

Detailed Analysis:

1. Validity of the Continuation of the Suspension of the Customs Broker License:
The appellant's Customs Broker License was initially suspended on 15 October 2019 under regulation 16(1) of the Customs Brokers Licensing Regulations, 2018, and the suspension was continued by an order dated 05 November 2019 under regulation 16(2). The appellant challenged the continuation of the suspension, arguing that the license should automatically revive as the mandatory notice under regulation 17(1) was not issued within 90 days from the date of receipt of the offence report.

2. Mandatory or Directory Nature of Regulation 17(1):
The core issue was whether the requirement to issue a notice within 90 days from the date of receipt of the offence report under regulation 17(1) was mandatory or directory. The appellant contended that non-compliance with this provision would result in the automatic revival of the license, citing judgments from the Delhi High Court and the Madras High Court. Conversely, the Department argued that the provision was directory, relying on judgments from the Bombay High Court and the Calcutta High Court.

Legal Provisions and Interpretation:
Regulation 16 allows for the suspension of a Customs Broker License if immediate action is necessary, while regulation 17 outlines the procedure for revoking a license or imposing a penalty, including the issuance of a notice within 90 days of receiving the offence report. The Tribunal examined various High Court decisions to determine the nature of this time limit.

Judgments from Different High Courts:
- Delhi High Court: Held that the time limit for issuing a notice under regulation 22(1) of the 2004 Regulations (similar to regulation 17(1) of the 2018 Regulations) is mandatory. Non-compliance would invalidate subsequent proceedings and revive the license.
- Madras High Court: Supported the view of the Delhi High Court, emphasizing the mandatory nature of the time limit to ensure swift action and accountability.
- Bombay High Court: Contrarily, held that the time limit is directory, suggesting that delays could be justified by recording reasons.
- Calcutta High Court: Followed the Bombay High Court's view, interpreting the time limit as directory due to the absence of specified consequences for non-compliance in the regulations.

Tribunal's Decision:
The Tribunal, guided by the Larger Bench decision in Collector of Central Excise, Chandigarh vs. Kashmir Conductors, determined that in the face of conflicting High Court decisions, the view of the jurisdictional High Court (Delhi High Court) should be followed. Consequently, the Tribunal held that the time limit for issuing a notice under regulation 17(1) is mandatory. Since the notice was not issued within 90 days from 27 September 2019, the suspension order dated 15 October 2019, and its continuation by the order dated 05 November 2019, could not survive. Thus, the appellant's Customs Broker License automatically stood revived.

Conclusion:
The appeal was allowed, and the suspension orders were set aside. The appellant's Customs Broker License was ordered to be revived automatically due to the non-issuance of the mandatory notice within the stipulated 90-day period.

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