2007 (3) TMI 424 - AT - Customs

Summary

Issues involved: Confirmation of suspension of CHA license, alleged involvement of CHA and employees in collecting illegal gratification, continuation of suspension pending enquiry.

The Appellate Tribunal CESTAT, Mumbai, in the case, confirmed the suspension of the Customs House Agent (CHA) license of the appellants based on allegations of involvement in collecting illegal gratification. The Commissioner of Customs had suspended the license on the grounds that the CHA was allegedly complicit with its employees in accepting illegal payments from customs staff for cargo assessment and clearance work. The Commissioner's order was based on the assertion that the CHA made payments for penalties related to overloading of trucks, indicating potential ownership of the trucks by the CHA. However, the Tribunal noted that there was no specific finding that the CHA had knowledge of the employees' actions. Citing legal precedents, the Tribunal held that vicarious liability cannot be imposed on the CHA without evidence of direct involvement. Therefore, the Tribunal set aside the suspension order but allowed the department to proceed with a regular enquiry under the 2004 Regulations.