Already Revoked Customs Broker Licence Cannot Be Revoked Again: Delhi High Court

The Delhi High Court has held that a Customs Broker licence which has already been revoked cannot be revoked again in separate proceedings, observing that such an action is beyond the statutory provisions and results in multiplicity of litigation.

The Division Bench of Justices Avneesh Jhingan and Shail Jain was hearing the appeal of a proprietorship concern which was granted a Customs Broker license in November 2016.

The Customs authorities had, by an order dated July 1, 2020, revoked the licence and forfeited the Appellant's security deposit of ₹5 lakh.

Thereafter, separate proceedings were initiated against the Appellant for an alleged violation of Regulation 10(n) of the Customs Brokers Licensing Regulations, 2018. These proceedings culminated in another order dated April 16, 2021, whereby the licence was again revoked and the security deposit was forfeited.

Appellant challenged the second order before the CESTAT. However, the Tribunal disposed of the appeal on the ground that the revocation of the licence had already been upheld in the appeal against the earlier order dated July 1, 2020.

The High Court noted that the revocation and forfeiture of security under the July 1, 2020 order had already been upheld by the Court in a connected appeal.

It consequently held that the issue of forfeiture of security under the subsequent order no longer survived.

More importantly, the Court held that the Customs authorities could not revoke a licence which had already been revoked.

“The action of the respondent in revoking an already revoked licence is beyond the statutory provisions and results in multiplicity of litigation for the same action i.e. revocation of the licence which cannot be appreciated,” it observed.

The Court further observed that even if there were more than one cause of action for revocation of the licence, they should form part of the same proceedings.

“Once the licence had already been revoked, there was no occasion to pass a second order of revocation without prejudice to the earlier order,” it held.

As such, the Court set aside the CESTAT order and remanded the matter to the Tribunal for fresh consideration.

For Appellant: Advocates Ravi Shekhar Jha,Raj Datt,Chandan & Mohit Kumar

For Respondent: Monica Benjamin, SSC with Laiba Arif & Ms. Prerika Narang