TaxTMI 
TaxTMI 
2015 (11) TMI 380
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....hout complying with the principles of natural justice. 3. Normally, in a case where a petitioner is seeking to invoke the writ jurisdiction of this Court, impugning an order from which an appeal lies, this Court would be reluctant to interfere in the same and relegate the petitioner to the alternative remedy, however, in the peculiar facts and circumstances of the case, as would be apparent from the facts referred to herein below, we are making an exception and are exercising discretion in entertaining this petition under Article 226. 4. On 01.11.2014, a show-cause notice was issued to the petitioner along with an importer to show-cause as to why penalty should not be imposed upon them for violation of the Customs Act, 1962 and Rule 13 of the Customs House Agents Licensing Regulations, 2004. A detailed reply to the same was filed by the petitioner. 5. On 14.02.2015, another show-cause notice was issued to the petitioner to show-cause as to why its CHA licence should not be revoked for failure to comply with the provisions of Regulations 11(a), 11(d), 11(e) and 11(n) of the CBLR, 2013 and why penalty be not imposed in terms of Regulations 22 read with Regulation 20 of the C....
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....at arise for consideration are: (i) whether the principal commissioner or commissioner of customs, as the case may be, is bound to accept the inquiry report, if it is in favour of the Custom Broker or can he disagree with the same?, and (ii) in case the answer to question no. (i) is that the commissioner can disagree with the inquiry report, then is it necessary for him to communicate the reasons for disagreement to the Custom Broker? 11. For answering the questions, it would be necessary to examine the provisions of Regulations 20 and 22 of the CBLR, 2013, which prescribe the procedure for revocation of licence and imposition of penalty. Regulations 20 and 22 of the CBLR, 2013 read as under:- 20. Procedure for revoking licence or imposing penalty. (1) The Commissioner of Customs shall issue a notice in writing to the Customs Broker within a period of ninety days from the date of receipt of an offence report, stating the grounds on which it is proposed to revoke the licence or impose penalty requiring the said Customs Broker to submit within thirty days to the Deputy Commissioner of Customs or Assistant Commissioner of Customs nominated by him, a written statem....
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....the licence of the Customs Broker or imposing penalty not exceeding the amount mentioned in regulation 22 within ninety days from the date of submission of the report by the Deputy Commissioner of Customs or Assistant Commissioner of Customs, under sub-regulation (5) : Provided that no order for revoking the license shall be passed unless an opportunity is given to the Customs Broker to be heard in person by the Commissioner of Customs. xxxx xxxx xxxx 22. Penalty.- A Customs Broker, who contravenes any provisions of these regulations or who fails to comply with any provision of these regulations shall be liable to a penalty, which may extend to fifty thousand rupees. 12. Sub-regulations 5, 6 and 7 of Regulation 20 of CBLR, 2013 stipulate that the Inquiry Officer shall prepare a report and record his findings within ninety days from the date of issuance of notice under sub-Regulation (1). The Principal Commissioner or Commissioner of Customs, as the case may be, is to furnish to the Customs Broker a copy of the report of the Deputy Commissioner of Customs or the Assistant Commissioner of Customs, as the case may be, and requiring the Customs Br....
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....quiry report, if it is in favour of the Custom Broker and he can disagree with the same. 15. Coming to question no. (ii). The opportunity of hearing, as contemplated by Regulation 20, envisages that the Customs Broker should be provided the material, which is to be used against him for passing an adverse order, so he is in a position to rebut, qualify or explain the same and show cause against the proposed adverse action. In case only favourable material is provided to the Customs Broker and the adverse material or the reasons for disagreement are withheld from him, then, the entire exercise would be a futility as he would not be provided with an opportunity to rebut, qualify or explain the same and show cause against the proposed adverse action. When an inquiry report is in favour of the Customs Broker and completely exonerates him and the Principal Commissioner of Customs or the Commissioner of Customs, as the case may be, intends to disregard the inquiry report on the basis of any material available or reason, then the principles of natural justice require that the said material/reasons must be communicated to the agent to enable the agent to rebut, qualify or explain the sam....