Customs, Excise and Service Tax Appellate Tribunal

DHL Logistics Pvt Ltd vs. Commissioner of Customs

MANU/CB/0155/2024

10.07.2024

Customs

Show cause notice under the CHALR has to be issued within ninety days of the receipt of the offence report

The Appellant is challenging the proceedings initiated against them under the provisions of Customs House Agent Licensing Regulations, 1984. The Appellant is a Clearing agent (CHA) for the importer Procter & Gamble (P & G), who had imported 'Wood Pulp Cellulose Foley Fluffs' (wood pulp).

As per Regulation 22(1) of CHALR, 2004, the show cause notice under the CHALR has to be issued within 90days of the receipt of the offence report. Thus, it is mandatory for the department to issue an offence report as to where the offence is committed and period of limitation commences from the said date of offence report. In the present case, admittedly there is no offence report and the finding of Adjudication Authority that the Show Cause Notice issued by JNCH, Nhava Sheva can be considered as offence report is unsustainable. Once there is a specific provision in CHALR, 2004 to issue notice within 90days from the date of issue of offence report, offence report is mandatory and in the absence of the same, no presumption can be drawn that the Show Cause Notice would suffice.

There is no reason to conclude that, there is a deliberate omission on the part of the Appellant to mislead the Department and to proceed with export of prohibited goods, when the description of the goods in the shipping bill is same as that was mentioned in the import bill of entry. The goods imported by the Procter & Gamble (P&G) were in the Customs premises and they were exported from the very same Customs Premises with due permission from the concerned officer. Thus, in the absence of any admissible evidence regarding violation of any provision of CHALR, 2004 and considering the procedural lapse in issuing offence report, the impugned order is unsustainable. Appeal allowed.

Tags : SCN Forfeiture Legality

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