Mandatory limitation and procedure under Customs Broker Licensing Regulations can invalidate proceedings and penalty.

Under the Customs Broker Licensing Regulations, 2018, proceedings may be initiated on an offence report where a prior customs notice contains the alleged violations and is forwarded for action, but Regulation 17(1) requires the show cause notice to be issued within ninety days of receipt of that report. The text treats that time limit as mandatory and says delay beyond it bars the proceedings. It also states that failure to follow the prescribed procedure, including consideration of the representation to the inquiry report and the request for cross-examination, vitiates the penalty imposed under Regulation 18.

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Issues: (i) Whether the show cause notice issued by the Tuticorin Customs could be treated as an offence report for initiating proceedings against the Customs Broker under the Customs Broker Licensing Regulations, 2018. (ii) Whether the show cause notice issued by the Cochin Customs under Regulation 17(1) of the Customs Broker Licensing Regulations, 2018 was barred by limitation. (iii) Whether the penalty imposed under Regulation 18 of the Customs Broker Licensing Regulations, 2018 was sustainable.

Issue (i): Whether the show cause notice issued by the Tuticorin Customs could be treated as an offence report for initiating proceedings against the Customs Broker under the Customs Broker Licensing Regulations, 2018.

Analysis: Regulation 17(1) requires initiation of proceedings on the basis of an offence report. The notice issued by the Tuticorin Customs contained the details of the alleged violations and was forwarded for action under the licensing regulations. On that basis, the commencement of proceedings by the Cochin Customs was held to be permissible.

Conclusion: The show cause notice issued by the Tuticorin Customs could be treated as the offence report for initiating action.

Issue (ii): Whether the show cause notice issued by the Cochin Customs under Regulation 17(1) of the Customs Broker Licensing Regulations, 2018 was barred by limitation.

Analysis: Regulation 17(1) mandates issue of notice within ninety days from receipt of the offence report. Even taking the Tuticorin notice as the offence report, the Cochin notice was issued beyond the prescribed period. The time limit under Regulation 17(1) was treated as mandatory and strictly enforceable.

Conclusion: The show cause notice was barred by limitation.

Issue (iii): Whether the penalty imposed under Regulation 18 of the Customs Broker Licensing Regulations, 2018 was sustainable.

Analysis: The adjudication was found to have proceeded without strict adherence to the procedure under Regulation 17, including consideration of the representation to the inquiry report and the request for cross-examination. Non-compliance with the prescribed procedure vitiated the penalty order.

Conclusion: The penalty under Regulation 18 was not sustainable.

Final Conclusion: The proceedings under the Customs Broker Licensing Regulations, 2018 were invalidated for breach of the mandatory time limit and procedural requirements, and the appellant's licence-related penalty was set aside with consequential relief.

Ratio Decidendi: Proceedings under Regulation 17 of the Customs Broker Licensing Regulations, 2018 must be initiated within the prescribed ninety-day period from receipt of the offence report, and failure to follow the mandatory procedure vitiates the resultant penalty.

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