TaxTMI 
TaxTMI 
TaxTMI 
2025 (11) TMI 544
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....f Customs, Tuticorin can pass an order that will have force beyond his territorial jurisdiction. Probably, taking a cue from what fell from this Court, Corrigendum was issued on 14.10.2025 holding that the suspension order should be read as effective for the areas under the jurisdiction of the Custom House, Tuticorin and not as effective across all Customs Stations. Though the scope of controversy has narrowed down, yet the moot question as to whether the Commissioner of Customs, Tuticorin can suspend the petitioner's Customs Broker License when he is not the issuing authority remains to be answered. 4. The learned counsel appearing for the writ petitioner submits that the respondent lacks the jurisdiction to pass such an order. 5. The learned Standing counsel took me through the statutory scheme. He pointed out that in Regulation 15, the expression employed is "Principal Commissioner or Commissioner of Customs other than those referred in Regulation 7". Thus, there is a qualifying adjective. On the other hand, in Regulation 16 which confers the power of suspension, there is no such restrictive clause following the words " Principal Commissioner or Commissioner of Customs....
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....nse under sub- regulation (2) shall be eligible to work as Customs Broker in all Customs Stations subject to intimation in Form C to the Principal Commissioner or Commissioner of Customs of the Customs Station where he intends to transact business and a copy of this intimation shall also be sent to the Principal Commissioner or Commissioner of Customs who has issued the license in Form B1 or Form B2, as the case may be. (4) A customs broker shall be eligible to transact business under these regulations at a customs station which requires intimation under the said Form C, subject to the condition that such customs broker shall be able to transact such business only after a period of two years from the date of issue of license in Form B1 or Form B2: Provided that the said period of two years shall be waived in respect of a license issued to a customs broker under the respective provisions of the Customs House Agents Licensing Regulations, 1984 or the Customs House Agents Licensing Regulations, 2004 or the Customs Brokers Licensing Regulations, 2013: Provided further that the period of two years referred to in sub-regulation (4) shall not be applicable where....
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....penalty.- (1) The Principal Commissioner or 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 license 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 statement of defense and also to specify in the said statement whether the Customs Broker desires to be heard in person by the said Deputy Commissioner of Customs or Assistant Commissioner of Customs. (2) The Commissioner of Customs may, on receipt of the written statement from the Customs Broker, or where no such statement has been received within the time-limit specified in the notice referred to in sub-regulation (1), direct the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, to inquire into the grounds which are not admitted by the Customs Broker. (3) The Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, shall, in the course of inq....
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....n 14 or incapacitated in the meaning of the said regulation, then the Principal Commissioner of Customs or Commissioner of Customs may pass an order imposing penalty as provided in regulation 18: Provided that where an order is passed against an F card holder, he shall surrender the photo identity card issued in Form F forthwith to the Deputy Commissioner of Customs or Assistant Commissioner of Customs. (9) Where in an offence report, charges have been framed against an F card holder in addition to the Customs Broker who has been issued a license under regulation 7, then procedure prescribed in regulations 16 and 17 shall be followed mutatis mutandis in so far as the prescribed procedure is relevant to the F card holder: Provided that where any action is contemplated against a G card holder alone under these regulations, then instead of authority referred to in sub-regulation (8), a Deputy Commissioner or Assistant Commissioner rank officer shall pass such order as mentioned in the said sub-regulation along with debarring such G card holder from transacting the business under these regulations for a period of six months from such order. Provided ....
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....t the Non-Parent Commissioner can pass an order of prohibition even extra-territorially. It is well settled that a proviso cannot run counter to the main provision. Nor can it enlarge the scope of the main provision. In other words, the proviso cannot prevail over the absolute terms of the main provision. The proviso in the very nature of the statutory scheme is subordinate to the main clause. I am tempted to think that the word "sections" is an inadvertent typographical omission in the said proviso. 13. There is a substantive reason as to why I conclude that the prohibitory order issued by a Non-Parent Principal Commissioner or Commissioner of Customs cannot extend beyond his Customs House. Section 21 of the General Clauses Act states that where a power is conferred, it includes a power to add to, amend, vary or rescind also. It means that the authority issuing the license can suspend. The license is issued only by the Parent Commissioner. The licensee practices within the jurisdiction of the Non-Parent Commissionerate under Form C intimation which is as follows:- "FORM - C [see sub-regulation (3) of regulation 7] Intimation by Customs Broker to work at another Customs....
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....ms at the station who issued the CHA license and such action would either be limited to a particular customs station where a violation has been noticed or action against the CHA in general, applicable at all customs stations where the CHA operates, depending upon the gravity and seriousness of the violation. Where the CHA licence is suspended, all 'G' and 'H' cards issued in respect of that licence would become non-operational. 5.2. Further, it is also clarified that the Commissioner of Customs at a customs station who had authorised a CHA to operate on 'C' form intimation, should inform the details of violations to the Commissioner of Customs at the customs station from where the CHA licence was issued for such CHA, so that necessary action for suspension or revocation of CHA licence, could be initiated by him. This would avoid duplication and ensure uniformity in adjudication of a case against a CHA in suspension or revocation proceedings by the Customs field formations. However, the Commissioner of Customs, who had authorised a CHA to operate on 'C' form intimation at a customs station, may take action in deserving cases under regulation ....