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2019 (11) TMI 1133 - AT - CustomsRevocation of Customs Broker (CB) License - forfeiture of security deposit - Time Limitation - illegal import of goods - case of appellant is that since the department has not followed the time limit prescribed in the Regulations which is mandatory, the order of revocation of license cannot sustain - HELD THAT:- In the present case, the offence report is dated 11.6.2018. However, Show Cause Notice has been issued on 14.9.2018 which is beyond the period prescribed in Regulation 20. Similarly, the proceedings for revocation have been completed beyond the period of nine months and the order for revocation has been issued on 23.5.2019 which is against the Board Circular 9/2010. Sub-clause (5) of Regulation 20 states that a report of inquiry shall be submitted within a period of 90 days from the date of issuance of the Show Cause Notice under sub-Regulation (1) - In the present case, the Show Cause Notice was issued on 14.9.2018 and the inquiry report was submitted only on 21.2.2019 which is beyond 90 days prescribed in sub-regulation (5). The Hon'ble High Court in the case of SANTON SHIPPING SERVICES VERSUS THE COMMISSIONER OF CUSTOMS, THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL [2017 (10) TMI 621 - MADRAS HIGH COURT] had occasion to consider whether the time-limit prescribed in the Regulation for proceedings of revocation of license is mandatory or directory. It was held that non-compliance of the time limit prescribed in the Regulation is fatal and the order of revocation of license passed without complying with the time limit cannot sustain. Merits of the case Regulation 10(d), (e) and (n) of CBLR, 2018 r/w CBLR, 2013 - Regulation 10(d), (e) and (n) of CBLR, 2018 r/w CBLR, 2013 - case of department is that appellant allowed Shri A. Sathish to use their Customs Broker license as well as to use the login id so as to facilitate illegal imports - HELD THAT:- There is no evidence adduced by the department to show that the appellant had allowed other persons to use their license and login id. Apart from a bald statement in the Show Cause Notice, there is nothing on record to prove these allegations - When the KYC details have been obtained, the appellant cannot be found fault alleging that he did not directly meet the IEC holder before filing the Bill of Entry or doing any such transaction as Customs Broker. In KUNAL TRAVELS (CARGO) VERSUS COMMISSIONER OF CUSTOMS (IMPORT & GENERAL) NEW CUSTOMS HOUSE, IGI AIRPORT, NEW DELHI [2017 (3) TMI 1494 - DELHI HIGH COURT] observed that it would be far too onerous to expect the CHA to inquire into and verify the genuineness of IE Code given to it by a client for each import / export transaction. Appeal allowed - decided in favor of appellant.
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