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2024 (2) TMI 624 - MADRAS HIGH COURTSuspension of petitioner's Customs Broker License under Regulation 16 of the Customs Brokers Licensing Regulations (CBLR), 2018 - forfeiture of security deposit - levy of penalty - serious lapse on the part of the Inquiry Officer in forwarding the report dated 30.12.2020 within the stipulated time - whether the petitioner had no role to play in the alleged fraud committed by the exporter, who allegedly wrongly claimed Duty Draw Back under the provisions of Section 75 of the Customs Act, 1962 read with Customs, Central Excise and Service Tax and Drawback Rules, 2017? HELD THAT:- Ordinarily the Inquiry Officer ought to have submitted a report by 20.9.2020 with the 1st respondent in accordance with Regulation 17 (5) of the Customs Broker Licensing Regulation, 2018. However, the report was made ready only on 30.12.2020. By this time, the Government had already promulgated the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Ordinance, 2020 on 31.3.2020. The Ordinance was replaced by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. The Act and the Ordinance came into force with effect from 31st day of March 2020 - 30th day of December, 2020 was the end date of the period during which the time limit specified in, or prescribed or notified under, the Central Excise Act, 1944 (1 of 1944), the Customs Act, 1962 (52 of 1962) (except sections 30, 30A, 41, 41A, 46 and 47), the Customs Tariff Act, 1975 (51 of 1975) or Chapter V of the Finance Act, 1994 (32 of 1994) for the completion or compliance of such action as specified under clause (a) or (b) of Section 6 of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (No.38 of 2020). 31st day of December 2021 was construed as the last day to which the time limit for completion of compliance of such action was extended. The 1st respondent has given approval for transmitting the enquiry report only on 02.02.2021. Thus, it cannot be said that the Enquiry Report dated 30.12.2020 was communicated to the 1st respondent within 90 days from the issuance of the show cause notice and within the extended period as specified in the above notification issued for the purpose of section 6 of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. Though, COVID 19 pandemic, did not abate and there was a 2nd wave till May-June, 2021, no notification has been brought to the attention of this Court that the time was further extended by the Central Board of Indirect Taxes, similar to the Notifications issued by the Central Board of Direct Taxes under the provisions of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 for the Purpose of Income Tax Act, 1961 - Since the time was not extended by any other notifications by the Central Government under Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Ordinance, 2020 on 31.03.2020 as was replaced by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, the proceedings initiated under the provisions of the Customs Broker Licensing Regulation, 2018 has to abate. Therefore, the failure on the part of the enquiry Officer to communicate the enquiry report within the period of 90 days stipulated in Regulation 17 (5) of the Customs Licensing Broker Regulation, 2018 is fatal - Proceedings have to therefore abate, since there was a failure in complying with the requirements of Regulation 17 (5) of the Customs Broker Licensing Regulation, 2018 and the enquiry report was not communicated in time, the question of 1st respondent considering the report and the representation of the petitioner would have risen. Petition allowed.
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