Customs Broker License suspension quashed due to Inquiry Officer's failure to meet Regulation 17(5) deadline

The HC quashed the suspension of petitioner's Customs Broker License under CBLR 2018. The Inquiry Officer failed to submit the report within the stipulated 90-day period under Regulation 17(5), submitting it on 30.12.2020 instead of the required 20.9.2020 deadline. Despite the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act 2020 extending certain time limits until 31.12.2020, the first respondent only approved transmission of the enquiry report on 02.02.2021, beyond the extended period. The court held this procedural failure was fatal, causing the proceedings to abate. The petition was allowed.

---

---

Issues Involved:
1. Suspension of Customs Broker License under Regulation 16 of the Customs Brokers Licensing Regulations (CBLR), 2018.
2. Issuance of Show Cause Notice under Regulation 17(1) of CBLR, 2018 for revocation of license.
3. Delay in submission and communication of the Inquiry Report under Regulation 17(5) of CBLR, 2018.

Summary:

Issue 1: Suspension of Customs Broker License
The petitioner challenged the impugned order dated 12.06.2020, suspending their Customs Broker License under Regulation 16 of CBLR, 2018. The court found the challenge to be academic due to the subsequent issuance of a Show Cause Notice.

Issue 2: Issuance of Show Cause Notice
The petitioner also challenged the Show Cause Notice dated 21.06.2020 issued under Regulation 17(1) of CBLR, 2018, which called for the revocation of the license and forfeiture of security deposit. The court found no irregularity in the issuance of the Show Cause Notice and dismissed the related writ petitions.

Issue 3: Delay in Submission and Communication of Inquiry Report
The petitioner argued that the Inquiry Report, which should have been submitted within 90 days from the issuance of the Show Cause Notice, was delayed. The report was prepared on 30.12.2020 but was communicated to the petitioner only on 03.02.2021. The court noted that the COVID-19 pandemic led to an extension of deadlines under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, extending the time limit to 31.12.2020. However, the court found that the Inquiry Report was not communicated within the extended period, deeming the delay fatal. Consequently, the proceedings under Regulation 17(5) of CBLR, 2018, were found to be non-compliant and the related writ petition was allowed.

Conclusion:
1. W.P.No.9145 of 2020 and W.P.No.5782 of 2021 were dismissed.
2. W.P.No.5787 of 2021 was allowed due to the failure to comply with the 90-day requirement for the Inquiry Report, resulting in the abatement of the proceedings.

---