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2018 Supreme(Del) 931
IN THE HIGH COURT OF DELHI AT NEW DELHI
SANJIV KHANNA, CHANDER SHEKHAR, JJ.
Sh. Harjeet Singh Johar – Petitioner
Versus
The Commissioner of Customs (General) & Ors. – Respondents
W.P.(C) 6908 of 2017
Decided On : 09-01-2018
For the Petitioner: Mr. Pankaj Bhatia, Mr. Nipun Goel, Mr. Dhruv Surana and Mr. Ashish Chaudhary, Advs.
For the Respondents: Mr. Abhishek Ghai, Adv. for Mr. Sanjeev Narula, SSC for Customs
Mandatory nature of the 90-day time period for issuing a show cause notice under Regulation 20(1) of the Customs Broker & Licensing Regulations, 2013.
Headnote:
Customs Broker - Show Cause Notice - Regulations 20, 22 - The court discussed Regulations 20 and 22 of the Customs Broker & Licensing Regulations, 2013, which specify the procedure for revoking a license or imposing a penalty and the penalty for contravention of the regulations. The court highlighted the mandatory nature of the 90-day time period for issuing a show cause notice and the consequences of non-compliance with this requirement.
Fact of the Case:
The petitioner challenged a show cause notice and an order confirming the suspension of their license under the Customs Broker & Licensing Regulations, 2013. The core issue was the interpretation of the term 'offence report' in Regulation 20(1) of the 2013 Regulations.
Finding of the Court:
The court quashed the show cause notice as it was issued after the 90-day limitation period from the date of receipt of the offence report, rendering the suspension order ineffective. However, the court clarified that the quashing of the show cause notice did not affect the examination and decision of any violation of provisions of the Customs Act.
Issues: Interpretation of the term 'offence report' in Regulation 20(1) of the Customs Broker & Licensing Regulations, 2013.
Ratio Decidendi: The 90-day time period for issuing a show cause notice under Regulation 20(1) of the 2013 Regulations is mandatory, and non-compliance renders the proceedings null and void.
Final Decision: The show cause notice was quashed as it was issued after the 90-day limitation period, and the suspension order was deemed ineffective. The court clarified that the quashing of the show cause notice did not affect the examination and decision of any violation of provisions of the Customs Act.
SANJIV KHANNA, J.
1. As a short issue arises in the present petition, we have, with consent of counsel, taken up the writ petition for final hearing and heard arguments.
2. The petitioner has impugned show cause notice dated 14.07.2017 issued by the Principal Commissioner under Regulation 20 of the Customs Broker & Licensing Regulations, 2013 (“2013 Regulations?, for short), inter alia, on the ground that it has been issued after expiry of limitation period of 90 days from the date of receipt of the offence report. Hence, it is bad in law, illegal and should be quashed.
3. The petitioner has also challenged legality and correctness of order dated 12.06.2017 passed by the Commissioner confirming the order of the suspension of licence in terms of Regulation 19 (2) of the 2013 Regulations.
4. In order to appreciate controversy, we would like to reproduce Regulations 20 and 22 of the 2013 Regulations which 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 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 inquiry, consider such documentary evidence and take such oral evidence as may be relevant or material to the inquiry in regard to the grounds forming the basis of the proceedings, and he may also put any question to any person tendering evidence for or against the Customs Broker, for the purpose of ascertaining the correct position.
(4) The Customs Broker shall be entitled to cross-examine the persons examined in support of the grounds forming the basis of the proceedings, and where the Deputy Commissioner of Customs or Assistant Commissioner of Customs declines to examine any person on the grounds that his evidence is not relevant or material, he shall record his reasons in writing for so doing.
(5) At the conclusion of the inquiry, the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, shall prepare a report of the inquiry and after recording his findings thereon submit the report within a period of ninety days from the date of issue of a notice under sub-regulation (1).
(6) The Commissioner of Customs shall furnish to the Customs Broker a copy of the report of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, and shall require the Customs Broker to submit within the specified period not being less than thirty days, any representation that he may wish to make against the said report.
(7) The Commissioner of Customs shall, after considering the report of the inquiry and the representation thereon, if any, made by the Customs Broker, pass such orders as he deems fit either revoking the suspension of the license or revoking the license 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
