Timelines under Regulations 17(1) and 17(5) of CBLR, 2018 are mandatory, rendering proceedings time-barred.

ORDER

This Writ Petition has been filed by the Petitioner challenging the Show Cause Notice No.24/2025 dated 25.08.2025 issued by the 1^st Respondent and Inquiry Report dated 13.01.2026 issued by the 2^nd Respondent.

2. Before proceeding further, it may be relevant to note the following undisputed facts:

The Offence Report dated 09.04.2025 is stated to have been received by the office of 1^st Respondent on 06.06.2025. Thereafter, 1^st Respondent had issued a Show Cause Notice dated 25.08.2025 to the Petitioner, to which, Petitioner submitted its Reply vide Communication dated 26.09.2025. The Inquiry Officer has submitted the Inquiry Report on

13.01.2026.

3. The learned counsel for Petitioner submitted that the impugned Show Cause Notice and Inquiry Report have been primarily assailed on the ground that the same are barred by limitation as provided under Regulations 17(1) & 17(5) of the Customs Brokers Licensing Regulations, 2018 (hereinafter referred to as “CBLR, 2018”).

(a) As per Regulation 17(1) of the CBLR, 2018, a notice in writing to the Customs Broker shall be issued by the Principal Commissioner of Commissioner of Customs within a period of 90 days from the date of receipt of an Offence Report. In the present case, the Offence Report was issued on 09.04.2025, but, the Show Cause Notice has been issued on 25.08.2025 i.e., after a lapse of 138 days from the date of the Offence Report which is beyond the mandatory period of 90 days as stipulated under Regulation 17(1) of the CBLR, 2018.

(b) Further, as per Regulation 17(5) of the CBLR, 2018, an Inquiry Report shall be submitted within a period of 90 days from the date of issuance of the Show Cause Notice. In the present case, the Show Cause Notice was issued on 25.08.2025, but, the Inquiry Report was submitted only on 13.01.2026 i.e., after a lapse of 141 days from the date of issuance of the Show Cause Notice which is beyond the mandatory period of 90 days as stipulated under Regulation 17(5) of the CBLR, 2018.

Therefore, the impugned Show Cause Notice and Inquiry Report are barred by limitation stipulated under Regulations 17(1) & 17(5) of the CBLR, 2018.

4. To a pointed question as to whether there is any dispute on the above dates, learned Senior Standing Counsel appeared on behalf of Respondents submitted that there is no dispute with regard to the above dates. However, the learned Senior Standing Counsel contended that though the Offence Report was issued on 09.04.2025, it was officially received by the competent authority on 06.06.2025 and the Show Cause Notice was issued on 25.08.2025, which is well within the 90 days period prescribed under Regulation 17(1) of the CBLR, 2018. Therefore, there is no violation of the statutory timeline.

5. In any view, the proceedings shall stand vitiated, inasmuch as the Inquiry Report ought to have been prepared within 90 days from the date of issuance of Show Cause Notice in terms of Section 17(5) of CBLR, 2018. However, the same was submitted after a lapse of 141 days from the date of issuance of Show Cause Notice. Thus, non adherence of period stipulated under Regulation 17(5) of CBLR, 2018 vitiates the entire proceedings.

6. When it was pointed out that this Court has already held that the timelines prescribed in Regulations 17(1) and 17(5) of CBLR, 2018 are mandatory, whether there are any reasons to depart when it comes to the timelines stipulated under Regulation 17 of CBLR, 2018, learned Senior Standing Counsel appeared for Respondent has placed reliance on the judgment of Kerala High Court in M/s.Cargo Care International Vs. Commissioner of Customs dated 02.12.2024, wherein, it has held that inasmuch as the consequences are not provided, the provision should be construed as dir