2016 (5) TMI 775 - HC - Customs

Revocation of CHA licence - Illegal export - Non-completion of proceedings within stipulated period - Regulation 22(5) of CHALR, 2004 - Held that:- the time limits in the CHALR 2004 for issuance of the SCN to the CHA licence holder and completion of the inquiry within 90 days of issuance of such SCN are sacrosanct. The aforesaid time limits were engrafted into Regulation 22 of the CHALR, 2004 by a Notification No. 30/2010- Cus.(N.T.) dated 8th April, 2010. Simultaneously, the CBEC issued Circular No. 9/2010 dated 8th April 2010 clarifying the procedures governing the suspension and revocation of CHA licence. This Court has consistently emphasised the mandatory nature of the aforementioned time limits in several of its decisions.

The directions issued by the CESTAT in the impugned order, permitting the Respondents to proceed with and complete the inquiry within a further period of 60 days from the date of the impugned order of the CESTAT despite noting that the mandatory time limits under the CHALR had not been adhered to is do not sustain and is accordingly set aside. Also the SCN issued by the Respondents to the Petitioner pursuant to the order of the CESTAT, the consequential inquiry report and the order passed by the Respondents revoking the Petitioner’s licence are also held to be unsustainable in law and are hereby set aside. The CHA licence of the Petitioner that stood revoked will stand revived forthwith. - Decided in favour of petitioner