Order date – 06 September 2022

Facts – 

• The Appellant, M/s HLPL Global Logistics Pvt. Ltd., were investigated amongst 21 exporters who were exporting man-made floor coverings and were claiming duty drawback under Focus Product Scheme by allegedly resorting to over valuation and misdeclaration.
• On 16.02.2015 an offense report was forwarded to Commissioner of Customs by DRI and on 24.02.2015 the license of the appellant was suspended. 
• This suspension order was challenged by the appellant before the Delhi High Court on the ground that though the offence report was submitted on 16.02.2015, the show cause notice was issued on 24.09.2015 much beyond the statutory period of ninety days contemplated under regulation 20(1) of the 2013 Regulations. The Delhi High Court held that since the show cause notice was not issued within the ninety days from the date of offence report i.e. 18.02.2015 it was not sustainable in law, therefore set aside the suspension.
• The department issued another SCN dated 22.10.2019 under the Customs Act proposing penalty on the appellant for the past exports against the same exporters.
• A SCN dated 24.01.2020 was then issued to the appellant proposing to revoke the Customs Broker License of the appellant by considering the show cause notice dated 22.10.2019 issued under the provisions of the Customs Act as the offence report.
• Aggrieved, the appellant filed an appeal.

Issue – 

• Whether treating the show cause notice as the offence report and initiating proceeding for revocation of the Customs Broker License is maintainable?

Order – 

• The Tribunal observed that Department clearly committed an error in initiating proceedings for revocation of the Customs Broker License of the appellant by issuing the show cause notice dated 24.01.2020 treating the show cause notice dated 22.10.2019 as the offence report. 
• The show cause notice dated 24.01.2020 proceeding to revoke the license of the appellant could not have treated the show cause notice dated 22.10.2019 as the offence report because the said show cause notice dated 22.10.2019 arises out of the offence report dated 16.02.2015.
• It is also not disputed by the respondent that the appellant had filed only one Shipping Bill dated 25.09.2014 in respect of M/s. Dwarka Trading Company and this Shipping Bill was considered in the earlier show cause notice dated 02.02.2016, which had been quashed by the Delhi High Court. No other Shipping Bill was submitted by the appellant and indeed none has been pointed out by the department. 
• Therefore the impugned order dated 30.09.2022 passed by the Commissioner cannot be sustained and was set aside. Appeal allowed.