2017 (6) TMI 1215 - HC - Customs

Renewal of CHA License - it was alleged that the respondent No. 1 did not fulfill the present norms of volume/value of business for 4 years at a stretch due to sickness, especially when he had another authorized person by name Shri Rajesh S. Satnak to undertake the job - Customs House Agents Licensing Regulations, 2004 - Held that - the 2004 Regulations specifically provides that the Commissioner could renew a licence, if he satisfied with the performance of the licensee when benchmarked against the quantity or value of cargo cleared by such licensee. These norms, as may be prescribed are not cast in stone and the same could be relaxed, if the Commissioner is satisfied with the reasons for its non-satisfaction as is evident for Rule 11 of the 2004 Regulations. The respondent s CHA licence continues to be valid today after having been renewed from time to time by the Commissionerate at Nagpur. This indicates that on being medically fit, the respondent has achieved the prescribed norms of business. The license is renewed - Appeal dismissed - decided against Revenue.

Summary

Issues:
Challenge to the restoration of Customs House Agent (CHA) license and renewal directive based on non-fulfillment of business volume/value norms.

Analysis:
The appellant challenged the restoration and renewal of the respondent's CHA license based on non-compliance with the business volume/value norms. The Commissioner revoked the license due to insufficient business activities during specific years, as per the Public Notice. The Tribunal noted the respondent's medical condition, which significantly impacted his ability to conduct business for several years. The Tribunal relied on a Delhi High Court decision to support the renewal of the license despite unsatisfactory performance due to medical reasons.

The appellant contended that the discretion to renew a license should not have been interfered with by the Tribunal, especially when business requirements were not met. However, the High Court upheld the Tribunal's decision, emphasizing the Commissioner's discretion to renew a license based on satisfactory performance, even if below prescribed norms. The Court highlighted the flexibility of the regulations to accommodate exceptional circumstances, such as medical issues affecting business operations.

The High Court affirmed the Tribunal's decision, pointing out that the respondent's license had been continuously renewed by the Commissionerate, indicating compliance with the prescribed business norms post-recovery. The Court concluded that in extraordinary situations, like the respondent's medical condition, the Commissioner's discretion to renew a license should be exercised, even if business volume/value falls below the set norms. Therefore, the appeal was dismissed, upholding the Tribunal's order in favor of the respondent.