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2019 (5) TMI 490 - AT - CustomsSuspension of CHA License - correctness of continuing of the order of suspension despite the long drawn investigation having failed to crystallise the memo of charges against the appellant herein - time limitation - HELD THAT:- In THE PRINCIPAL COMMISSIONER OF CUSTOMS (GENERAL) MUMBAI VERSUS UNISON CLEARING PVT. LTD., AND OTHERS. [2018 (4) TMI 1053 - BOMBAY HIGH COURT], the Hon'ble High Court of Bombay had disapproved of the setting aside of the detriment imposed in accordance with Customs Brokers Licensing Regulation, 2018 merely on failing the test of adherence to the time-line. While acknowledging the prescriptions as statutorily binding, the Hon'ble High Court held that the time-line and adherence thereof needed further test against the facts and circumstances of each case and the reasons for delay should also be considered to appreciate and assign the responsibility as well as consequences thereof. The relationship of a custom broker with a licensing authority is one of ‘near employment’ as a facility for smooth clearance of cargo on behalf of importers/exporters who may be at other locations. Unlike tax disputes, the consequence of detriment under the Licensing Regulations has a bearing on the lives of the brokers as well as their dependents. There can be no doubt that suspension for long periods of time or disproportionate penalties impact these persons. It is in acknowledgement of the criticality of expeditious action that the Regulations contemplate prescription of timeline, without which an atmosphere of lack of accountability would pervade the entire exercise. All that is available on record is that the investigation in a major fraudulent activity is still under way. It is not the case of the respondent- Commissioner that any act on the part of the appellant has delayed the initiation of proceedings. The explanation that investigation is pending is also not readily acceptable. It would appear that either the evidence required to sustain the proceedings is not available or that the role of the customs broker may not have been so critical in the transaction to fraudulently claim the drawback. Either way, the continuation of suspension in such circumstances does not, in our opinion, appear to be in concord with the principles of accountability or of prompt response. There is no evidence of any lack of cooperation on the part of appellant herein. The cause of justice cannot be further enabled except by an immediate revocation of the suspension and reinstatement of the licence - Appeal allowed.
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