TMI Blog2018 (8) TMI 48X X X X Extracts X X X X X X X X Extracts X X X X ..... confirm to the prescribed standard. On further investigation, it appears that several such similar consignments handled by the petitioner have come under scrutiny. The Department conducted search operations in the premises of the petitioner, after obtaining warrant, documents have been recovered, statements have been recorded from several persons including the officers of the petitioner and the writ petitioner themselves would admit that for several months, statements have been recorded from various persons - the auction initiated by the respondent in invoking such Regulation 19(1) of the CBLR by passing an order on 14.03.2018 on receipt of the offence report on 27.02.2018 cannot be stated to be barred by limitation or an exercise, which is uncalled for. Thus, the petitioner has to necessarily fail on this issue. The impugned order of suspension passed under Regulation 19(2) of the Regulations cannot be held to be invalid merely because the power was exercised only after the receipt of the offence report dated 27.02.2018 and the Court is convinced that the exercise of power cannot be faulted as not being the one where immediate exercise was done - petition dismissed - decided a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted that before the Court examining the factual matters, which have been dealt with in detail in the counter affidavit, the Court may take into consideration the fact that the offence report was received by the respondent from the office of the Air Cargo Intelligence Unit, Chennai VII Commissionerate on 27.02.2018 and the petitioner's licence was suspended with immediate effect by order dated 14.03.2018 and an opportunity of personal hearing was granted on 27.03.2018 and hence, there is no delay in initiating action and the case warrants immediate suspension. 5.Further, by referring to the counter affidavit, it is submitted that the petitioner in the affidavit filed in support of the writ petition, has referred to a Board Circular No.9/2010-Cus., which was issued much prior to coming into force of CBLR and hence, not applicable to the case on hand. The requirement prescribed under the CBLR for suspension of a licence under Regulation 19(1) of the CBLR is that personal hearing has to be offered within 15 days from the date of suspension, which has been complied with in the petitioner's case. Further, it is submitted that orders issued under Regulations 19(1) and 19( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an opportunity of hearing to the Customs Broker, whose licence is suspended and may pass an order either revoking the order of suspension or continuing it, as the case may be. 9.The proviso states that in case the Principal Commissioner or Commissioner continues the suspension, the further procedure thereafter shall be as provided under Regulation 20 of the CBLR. 10.Regulation 20 of the CBLR deals with procedure for revoking licence or imposing penalty. In the instant case, the petitioner's customs broker licence was suspended by order dated 14.03.2018 under Regulation 19(1) of the CBLR, an opportunity of personal hearing was granted to the petitioner within fifteen days therefrom, i.e., 27.03.2018 and an order dated 06.04.2018 has been passed under Regulation 19(2) of the CBLR continuing the order of suspension. This order is impugned in this writ petition. 11.The circumstance under which the Principal Commissioner or Commissioner of Customs can invoke the power under Regulation 19(1) of the CBLR is circumscribed in the said provision. The provision states that in appropriate cases, where immediate action is necessary, the Commissioner may suspend the licence of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reg return arrival of the cargo; ACIU officers opened and 100% examination in supdt/cha presence; sample drawn for test and consignment seized under Mahazar; AA1 requested to detain the cargo 08.03.2017 / 10.03.2017 CLRI report for Fortune leather consignment does not satisfy norms in PN 21/2009 08.03.2017 to 11.04.2017 Statements of persons recorded; 18.03.2017, 23.03.2017, 30.03.2017, 13.04.2017, 19.04.2017 09.05.2017 Letters sent by ACIU to DGM (Export Cargo) GM (Cargo) calling for records of Export cargo by sabin 14.03.2018 Suspension Order under Regu. 19(1) passed with Immediate effect suspending licence except for all the documents filed prior to the present order. 27.03.2018 PH under Regu 19(2) granted. 13.From the above dates and events, it is seen that Specific Intelligence was received by the Department alleging misdeclaration on 01.03.2017. The cargo, which was shifted through Oman Airways, recalled from Muscat before reaching its final destination at Italy. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de a statutory regulation. The reason for issuing such circulars is on account of certain difficulties faced by certain field formulators and the Board issued guidelines to streamline the process. 16.The Court while exercising the power of judicial review, will examine as to whether there has been any error in the decision making process, as there was any arbitrary exercise of power, whether the party affected had reasonable opportunity to present their case, whether the authority, who exercised the power, had jurisdiction to do so, whether the order suffers from any perversity or palpable illegality and no reasonable person would approve of the decision taken. Thus, while exercising the power of judicial review, the Court will not examine the order passed by the Authority as if exercising appellate powers. 17.On facts, I am convinced that the investigation, which has proceeded since March 2017, appears to have opened a can of worms. The consignment, which was in transit, handled by the petitioner, was brought back. On examining of the cargo, CLRI certified that it does not confirm to the prescribed standard. On further investigation, it appears that several such similar co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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