2013 (6) TMI 798 - AT - Customs

Summary

Issues:
The issues involved in the judgment are the revocation of CHA license and forfeiture of Security Deposit based on allegations of aiding fraudulent practices and claiming illegal DEPB credit.

Revocation of CHA License:
The appellant's CHA license was revoked and Security Deposit forfeited due to allegations of aiding and abetting conspiracy involving fraudulent practices. The suspension of the CHA license was challenged before the Tribunal, which set aside the suspension order as no evidence was found implicating the appellant in the fraudulent activities. The Tribunal observed that no incriminating documents were recovered from the appellant's office, and no evidence showed the appellant's direct involvement in the fraudulent shipping bills. The suspension order was set aside, and the respondent was directed to proceed with the inquiry under CHALR, 2004. However, during the inquiry, the appellants were not provided with the necessary export declarations for their defense, leading to a violation of principles of natural justice. The Tribunal held that proceeding without supplying the demanded documents was a gross violation of natural justice and set aside the impugned order with directions to provide the necessary documents to the appellants before proceeding further.

Fraudulent Availment of DEPB Credit:
The Revenue contended that the appellants were involved in fraudulent availment of DEPB script without exporting the goods, justifying the revocation of the CHA license. However, the Tribunal found that there was no concrete evidence implicating the appellants in the fraudulent activities. The appellants maintained that they had not dealt with the export under the bogus shipping bills and requested signed export declarations for their defense, which were not provided to them during the inquiry. The Tribunal held that the failure to supply these crucial documents to the appellants constituted a violation of natural justice. As a result, the impugned order revoking the CHA license was set aside, and the appellants were directed to be provided with the necessary documents before further proceedings under CHALR, 2004.

Conclusion:
The Tribunal allowed the appeal, citing a gross violation of natural justice in the proceedings against the appellants. The impugned order revoking the CHA license was set aside, and directions were given to supply the demanded documents to the appellants before proceeding with the matter under Rule 22 of CHALR, 2004.