2007 (8) TMI 510 - AT - Customs

Customs House Agents licence - Period of revocation - Held that - Since we are satisfied that the punishment already undergone is sufficient, we order that the revocation of CHA licence will be operative only up to 30-9-2007 and will cease to have effect from 1-10-2007 from which date the appellants will be entitled to re-commence their work as Customs House Agents - appeal allowed.

Summary

Issues:
1. Suspension and revocation of CHA license under Custom House Agents Licensing Regulations, 2004.
2. Justification of revocation based on enquiry report.
3. Consideration of punishment and period of revocation.

Issue 1: Suspension and revocation of CHA license under Custom House Agents Licensing Regulations, 2004
The case involved the initial suspension of the CHA license by the Commissioner of Customs under Regulation 20(2) of the Custom House Agents Licensing Regulations, 2004. The suspension was challenged before the Tribunal, which set aside the suspension and allowed the Revenue to initiate regular proceedings for revocation of the license. The impugned order in April 2007 revoked the CHA license based on an enquiry report upholding all charges against the CHA.

Issue 2: Justification of revocation based on enquiry report
During the proceedings, it was noted that a show cause notice for violation of the provisions of the DFRC scheme was issued and pending adjudication. The Tribunal considered the CHA being out of business since April 2006 as a significant punishment already suffered. Citing precedents, the Tribunal emphasized that punishment should be commensurate with the offense. It referred to previous cases where loss of business until the Tribunal's decision was considered sufficient punishment, leading to the reduction of the period of revocation in certain instances.

Issue 3: Consideration of punishment and period of revocation
The Tribunal, taking into account the punishment already undergone by the CHA, ordered that the revocation of the CHA license would be operative only until a specified date, after which the CHA would be entitled to recommence their work as Customs House Agents. This decision was based on the Tribunal's assessment that the punishment already experienced by the CHA was sufficient, aligning with the principle that the punishment should be proportionate to the offense.

In conclusion, the appeal was allowed, and the revocation of the CHA license was limited to a specific period, after which the appellants were permitted to resume their work as Customs House Agents.