2012 (1) TMI 181 - HC - Central Excise

Summary

Issues involved:
The issues involved in the judgment are:
1. Whether the Tribunal committed substantial error of law in setting aside the order suspending CHA license.
2. Whether the Tribunal erred in ignoring negligence on the part of the CHA leading to misdeclaration of export of goods.

Issue 1:
The first issue pertains to the suspension of the CHA license of the respondent. The Tribunal had set aside the order suspending the CHA license issued to M/s. Kashyap Shipping Pvt. Limited by the Commissioner of Customs, Kandla. The Tribunal was questioned for committing a substantial error of law in this regard. The Tribunal's decision was challenged by the revenue.

Issue 2:
The second issue revolves around the negligence on the part of the CHA, which led to the misdeclaration of export of goods. The Tribunal was accused of passing an order ignoring this evident negligence, which allowed others to use the license without fulfilling statutory obligations under rule 13 and rule 14 of the Customs House Agent Licensing & Regulations, 2004.

The High Court, in its judgment, noted that the present Tax Appeal was against the ex-parte suspension order of the CHA license, which was later confirmed after a hearing. Subsequently, the respondent challenged the further order of suspension separately before the Tribunal, which was allowed. The revenue then filed a separate Tax Appeal against the Tribunal's decision.

The Court observed that since the initial suspension order had merged into the subsequent order confirming the suspension after a hearing, and considering that the revenue had filed an independent appeal pending before the Tribunal, the present Tax Appeal was disposed of as it was not required to be entertained.