2007 (2) TMI 15 - AT - Customs

Cha License Appellant CHA License was suspended by the Commissioner of Customs Mumbai in Contemplation of enquiry against the CHA After considering all the detail the impugned order set aside and the appeal is allowed

Summary

Issues:
- Suspension of CHA license by Commissioner of Customs, Coimbatore based on misconduct in Mumbai jurisdiction
- Validity and renewal of CHA licenses issued by different Customs Commissioners
- Operation and obligations of CHA licenses within respective jurisdictions
- Applicability of Tribunal's decision in Sindhu Cargo Services Ltd. case
- Jurisdictional authority to suspend CHA license

Analysis:

1. The case involves the suspension of a Customs House Agent (CHA) license by the Commissioner of Customs, Coimbatore, due to misconduct by the appellants' employees in Mumbai. The suspension was based on Regulation 20(2) of the Customs House Agents Licensing Regulations, 2004 (CHALR). The Commissioner at Coimbatore suspended the license pending an inquiry, citing the jurisdiction to do so based on investigative facts from another Commissionerate. The order of suspension was confirmed for six months, leading to the appeal challenging this decision.

2. The judgment delves into the details of the issuance, validity, and renewal of CHA licenses by different Customs Commissioners. The appellants held licenses from both Mumbai and Coimbatore, with the Mumbai license renewed multiple times and the Coimbatore license issued under CHALR 2004. The Coimbatore license allowed the appellants to operate as a CHA nationwide, subject to intimation to the relevant Customs authorities.

3. The analysis highlights the importance of Form-C intimation for the operation of CHA licenses within specific jurisdictions. The failure to provide such intimation rendered the rights and obligations of the licenses ineffective in the respective jurisdictions. The Tribunal's decision in Sindhu Cargo Services Ltd. case was deemed inapplicable due to the unique circumstances of this case.

4. The judgment emphasizes that the authority to suspend a CHA license lies with the Commissioner who issued the license or permitted business transactions within their jurisdiction. In this case, the licenses issued by Mumbai and Coimbatore Commissioners operated independently due to the lack of intimation, making the suspension by the Coimbatore Commissioner on Mumbai-related grounds legally unsustainable.

5. The final decision set aside the impugned order of suspension by the Coimbatore Commissioner, allowing the appeal. It clarified that the proceedings related to the Mumbai license's suspension and subsequent orders had no relevance to the issues addressed in this case. The judgment was pronounced on 16-2-2007, resolving the jurisdictional complexities surrounding the CHA licenses and the suspension based on misconduct in a different jurisdiction.