Jai Logistics Services Pvt Ltd Vs Principal Commissioner of Customs (Madras High Court)
Conclusion: Since there was a failure in complying with the requirements of Regulation 17 (5) of the Customs Broker Licensing Regulation, 2018 (CBLR, 2018) and the enquiry report was not communicated in time within the period of 90 days stipulated in Regulation, therefore, the proceedings initiated had to abate.
Held: Assessee-customs broker firm had challenged the suspension of its license by the Principal Commissioner of Customs, Chennai, and subsequent proceedings initiated for the revocation of its license. It was also facing parallel proceedings under the Customs Act, 1962, for alleged fraud related to Duty Drawback claims by an exporter. A show-cause notice was issued to assessee by the Principal Commissioner of Customs under Regulation 17(1) of Customs Brokers Licensing Regulations (CBLR), 2018 for revocation of license. Assessee submitted that the concerned authority delayed the inquiry report beyond the mandated 90-day period rendering the entire proceedings void. Assessee further submitted that even though government had extended deadlines due to the COVID-19 pandemic, the inquiry report was still submitted after the extended deadline of December 31, 2020. Assessee relied on various judicial precedents and prayed that procedural lapses in adhering to the regulatory timelines should result in the dismissal of the proceedings initiated against them. It was held that though, COVID 19 pandemic, did not abate and there was a 2nd wave till May-June, 2021, no notification had been brought to the attention of the Court that the time was further extended by the Central Board of Indirect Taxes, similar to the Notifications issued by the Central Board of Direct Taxes under the provisions of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 for the Purpose of Income Tax Act, 1961. Since the time was not extended by any other notifications by the Central Government under Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Ordinance, 2020 on 31.03.2020 as was replaced by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, the proceedings initiated under the provisions of the Customs Broker Licensing Regulation, 2018 had to abate. Therefore, the failure on the part of the enquiry Officer to communicate the enquiry report within the period of 90 days stipulated in Regulation 17 (5) of the Customs Licensing Broker Regulation, 2018 was fatal.
