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2006 (2) TMI 306 - AT - CustomsSuspension of the license - Misuse of the CHA license - Customs House Agent Licensing Regulations - clearance of imported goods i.e. Man made polyster dyed/printed fabrics and polyster filament yarn - fraudulently obtained DEEC Licenses - diverted to the domestic market - violation of the DEEC Scheme - HELD THAT - There being no proximity between the date of suspension of the CHA Licence and the detection of the alleged misdeamour, an order suspending a licence should explain should be speaking to enable the holder, whose licence has been suspended, to know the reasons to why the suspension was called for. This order devoid of reasons cannot be upheld on grounds as urged by the ld. DR. Since there has been a delay in ordering the suspension of the licence and that delay has not been satisfactorily explained and no reasons for the suspension appear in the order, the prayer of the applicant that he his family has no other means of livelihood other than the business as CHA License holder induces us to conclude that we cannot uphold the suspension of the licence. The suspension order is therefore vacated. We make it abundantly clear that any observation on this suspension order will not deter the Commissioner from conducting detailed inquiries in this and any other proceedings under the CHALR, 2004 and or the Customs Act, 1962. Application in appeals disposed in above terms.
Issues:
Suspension of Customs House Agent (CHA) license under CHALR 2004 without immediate provocation or reasons, delay in ordering suspension, absence of reasons for suspension in the order, impact of suspension on livelihood, necessity of detailed inquiries by the Commissioner. Analysis: The judgment by the Appellate Tribunal CESTAT, Mumbai dealt with the suspension of a CHA license under the CHALR 2004. The Commissioner's Order suspended the license due to serious misconduct by the CHA firm in clearing imported goods on behalf of a fake importer, resulting in revenue loss. However, the order of suspension did not provide immediate provocation or reasons for the action, raising concerns about the lack of clarity in invoking Regulation 20(2) of the CHALR 2004. The Tribunal noted that the order was devoid of reasons and cryptic, failing to explain the grounds for suspension, as highlighted by the ld. Advocate for the applicants. The Tribunal considered the arguments presented by the ld. DR, emphasizing the need for immediate suspension in cases of irregularities amounting to criminal offenses and violations of the Customs Act. While agreeing with the necessity of immediate action in deserving cases, the Tribunal highlighted the importance of explaining the reasons for any delay in effecting suspension from the date of violation detection. The absence of reasons and a tardy attitude were deemed fatal to an order of suspension, as observed in various decisions cited by the ld. Advocate. The Tribunal emphasized that an order suspending a license should be speaking and provide the holder with reasons for the suspension to enable them to understand the basis for the action. Due to the unexplained delay in ordering the suspension, the Tribunal concluded that the suspension order lacked justification. The plea from the applicant, stating that their livelihood depended on the CHA business, further influenced the decision to vacate the suspension order. It was clarified that vacating the suspension did not prevent the Commissioner from conducting detailed inquiries under the CHALR 2004 and the Customs Act, ensuring that investigations could proceed despite the suspension being lifted. The Tribunal's decision highlighted the importance of transparency, justification, and timely action in matters of license suspension under regulatory frameworks like the CHALR 2004.
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