Order Date – 02 February 2023

Parties: M/s HIM Logistics Pvt. Ltd. Vs Commissioner of Customs (Airport & General)

Facts –

• The Petitioner, M/s HIM Logistics Pvt. Ltd., was issued with show cause notice dated 24.01.2020 on the basis of investigation carried out in respect of certain exporters who alleged to be non-existent but had availed duty drawback and benefits of focus products scheme. 
• The said Show Cause Notice was issued treating a Show Cause Notice dated 22.10.2019 as an Offence Report. On 31.12.2020 the respondent passed an order revoking the petitioner’s Customs Broker License and directed d forfeiture of the security deposit by the petitioner and levied a penalty of ₹50,000/- on the petitioner.

Issue – 

• Whether the order is beyond the jurisdiction?

Order –

• The divisional bench of Hon’ble High Court held that the Show Cause Notice dated 24.01.2020 issued to the petitioner is, clearly, erroneous as it proceeds on the basis that the Show Cause Notice dated 22.10.2019 is the Offence Report and the Show Cause Notice dated 22.10.2019 is in respect of the same offence as the subject matter of the Offence Report dated 16.02.2015.
• In terms of Regulation 17(1) of the said regulation – which is also similarly worded as Regulation 20(1) of the Customs Brokers Licensing Regulations, 2013 – the procedure for revocation of license is required to be triggered by issuance of a notice to the Customs Broker within a period of ninety days from receipt of the Offence Report.
• It is apparent that the proceedings for revocation of the petitioner’s license were commenced beyond the period of ninety days from the date of the Offence Report. the impugned order cannot be sustained. It is also not disputed that the petitioner has not acted as a Customs Broker in respect of exports under the offending Shipping Bills.
• Hence the appeal is allowed.