ORDER :

MOHAMMED SHAFFIQ, J.

These Writ Petitions have been filed praying for issuance of a writ of Certiorari and Certiorarified mandamus, seeking to quash the show cause notice dated 10.01.2025 issued under Regulation 17(1) of CBLR, 2018 and quash the impugned Inquiry Report dated 09.04.2025, on the premise that the said show cause notice does not comply with the limitation contained in Regulation 17(1) of CBLR, 2018 for issuance of Show cause notice.

2. Brief facts:

2.1. Petitioner is a partnership firm engaged in customs clearance work since 2015. Petitioner would submit that present show cause notice is concerned with investigation carried out, concerning export of goods made vide 108 shipping bills during the period from 25.12.2016 to 04.11.2018 by M/s.Heeba Enterprises Pvt. Ltd., Mumbai viz., RMG goods, home and kitchen accessories, bags, kids wear etc. meant for export to USA and other countries from Nhava Sheva Port. Investigation revealed that FOB value for the above said export was Rs.15,47,16,142/- and exporter claimed drawback of Rs.63,49,427/- and Rs.22,48,812/- towards Rebate of State and Central Taxes and Levies (hereinafter referred to as ‘ROSCTL’ in short) incentive benefits. Investigation revealed that exporter had allegedly not realized the export proceeds/FOB value, pertaining to the above said shipping bills within the prescribed time limit. However, exporter had availed the incentives, in the form of drawback and ROSCTL against such exports. Show cause notice refers to the above shipping bills, filed by various Customs Brokers, including the petitioner herein, M/s.Senghi Shipping Services (having filed 18 shipping bills). In respect of the above said 18 SB filed by petitioner, as CHA, the total drawback amount claimed by the exporter was Rs.12,74,120/- and ROSCTL.

2.2 It is submitted that case of the Department was that petitioner as a Customs Broker inter – alia failed to advise exporters to comply with the provisions of the Act, Rules and Regulations and failed to exercise due diligence.

2.3. Petitioner would submit that Offence Report was received by the respondent in the form of a show cause notice dated 30.03.2024 issued by the ADC, ACC (Export) Mumbai.

2.4. He would submit that in terms of Regulation 17(1) of CBLR, 2018, Show cause notice ought to have been issued within 90 days from the date of the Offence Report dated 30.03.2014 i.e., on or before 29.06.2024. However, Show cause notice had been issued on 10.01.2025. He would submit that in terms of Regulation 17(1) of CBLR, 2018, Show cause notice ought to be issued within 90 days from the receipt of the Offence Report, the same has been found to be mandatory by this Court on more than one occasion. However, the Show cause notice had been issued on 10.01.2025 i.e., beyond 90 days from the date of receipt of Offence Report, thereby vitiating the proceeding.

3. Heard both sides. Perused material on record.

4. It may be relevant to refer to Rule 17(1) of Customs Brokers Licensing Regulations, 2018, which reads as under:

“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.”

5. The above regulation has been the subject matter of consideration on more than one occasion. Question as to whether the timeline prescribed in Regulation 17(1) of CBLR, is mandatory and failure to adhere to the timeline would prove fatal to the validity of the show cause notice is no longer res integra. This Court