2002 (5) TMI 653 - AT - Customs

Summary

Issues:
1. Suspension of CHA license under Regulation 21(2) of the Custom House Agents Licensing Regulations, 1984.
2. Grounds for suspension:
a. Use of another firm's CHA license.
b. Illegal diversion of duty-free goods.
c. Involvement in a narcotics case.

Analysis:
1. The appeal before the Appellate Tribunal CEGAT, Mumbai arose from the suspension of the CHA license of the appellants by the Commissioner of Customs under Regulation 21(2) of the Custom House Agents Licensing Regulations, 1984.

2. The appellants, a sole proprietary concern, were accused of using another firm's CHA license and illegally diverting duty-free goods for sale in the domestic market. Additionally, one of the appellants was implicated in a narcotics case, leading to the suspension of their license.

3. The Tribunal had previously set aside suspension orders based on the first two grounds and the involvement in the narcotics case was negated by a judgment from the 2nd Additional Sessions Judge. The appellants argued that none of the grounds for suspension were valid anymore, as per the Tribunal's previous decisions and the acquittal in the narcotics case.

4. The Department, represented by the ld. D.R., opposed the appellants' plea for setting aside the suspension order, reiterating the findings of the adjudicating authority.

5. After considering the submissions, the Tribunal agreed with the appellants that none of the grounds for suspension in the present order were sustainable. Given the previous Tribunal decisions and the judgment from the Additional Sessions Judge, the Tribunal set aside the suspension order and directed the immediate restoration of the CHA license to the appellants.

6. Consequently, the appeal was allowed, and the CHA license was restored to the appellants with immediate effect, as the grounds for suspension were deemed invalid based on previous decisions and the judgment in the narcotics case.