2015 (6) TMI 975 - HC - Customs

CHA licence - tribunal reversed the ex-parte order in favor CHA and allowed the appeal entirely - Commissioner of Customs, Bangalore, passed, the prohibition order prohibiting the operations of the respondent within the jurisdiction of Bangalore Commissionerate with immediate effect as per the order dated 11-7-2013 - principles of natural justice - Held that - The Appellate Tribunal though has set aside the order passed by the Commissioner of Customs, Bangalore, on the ground that the respondent was not heard in the matter, the Tribunal instead of remitting the matter to the Commissioner of Customs, Bangalore, proceeded to allow the appeal in its entirety even on merits. Hence, the order of the Appellate Tribunal is also liable to be set aside. The matter is remitted to the Commissioner of Customs, Bangalore, for fresh disposal in accordance with law.

Summary

Issues:
Challenge to order of Customs, Excise & Service Tax Appellate Tribunal by Commissioner of Customs, Bangalore regarding suspension of Customs House Agent's license and prohibition order.

Analysis:
The judgment pertains to an appeal before the High Court challenging the order of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) by the Commissioner of Customs, Bangalore. The respondent, holding a Customs House Agent's license, was involved in facilitating the clearance of imported goods under suspicious circumstances. Specific intelligence indicated misclassification of goods to evade duty payments. Consequently, the Commissioner of Customs, Chennai, suspended the respondent's license, which was later revoked, recommending prohibition to the Commissioner of Customs, Bangalore.

The main contention in the appeal was the lack of opportunity for the respondent to be heard by the Commissioner of Customs, Bangalore before the prohibition order was issued. The High Court found the order to be against the principles of natural justice due to the absence of a hearing. While acknowledging the Tribunal's decision to set aside the order based on the respondent not being heard, the High Court criticized the Tribunal for not remitting the matter back to the Commissioner for proper consideration and instead deciding the appeal on merits.

As a result, the High Court set aside the Tribunal's order and the Commissioner's prohibition order. The matter was remitted back to the Commissioner of Customs, Bangalore for fresh consideration in accordance with the law. The High Court kept all other issues raised in the appeal open for future review. The judgment emphasizes the importance of adherence to natural justice principles in administrative decisions, particularly in matters affecting the rights of individuals such as license suspensions and prohibitions.