2010 (12) TMI 206 - AT - Customs

CHA license - mis-declaration - license has been suspended on the basis of investigation, on the ground that appellant had allowed someone else to use his license for fraudulent activities - no evidence to show that the blank shipping bills duly signed were handed over - Custom officer has not verified as to who had signed the shipping bills on behalf the CHA and even check-list is not available, which could have helped to verify who had signed the same - suspension for eight months is sufficient and further continued suspension without an enquiry to ascertain the truth and also without giving proper opportunity to the appellants, is not warranted order set-aside and suspension revoked - department is free to conduct the enquiry and if warranted punish the CHA Appeal allowed

Summary

Issues: License suspension of Custom House Agent, mis-declaration of goods, negligence, authorization to file shipping bills, absence of evidence, duration of suspension, lack of proper verification, need for enquiry, gravity of offense, civil consequences of suspension.

License Suspension of Custom House Agent:
The judgment revolves around the suspension of the license of a Custom House Agent (CHA) due to alleged fraudulent activities by a third party using the agent's license. The appellant, a CHA, had allowed another individual to use the license for fraudulent activities, leading to mis-declaration of goods in shipping bills. The Commissioner found negligence on the part of the CHA, stating that the agent failed to fulfill obligations under CHA Licensing Regulations. The appellant contested the suspension, denying authorization for the fraudulent activities and highlighting the lack of evidence linking the CHA directly to the mis-declaration.

Verification and Enquiry Process:
The tribunal analyzed the evidence presented and raised concerns about the lack of proper verification procedures. It noted the absence of signatures on shipping bills by authorized persons of the CHA, casting doubt on the authenticity of the documents. The judgment emphasized the need for a thorough enquiry into the matter, especially regarding the mis-declaration of goods and the handling of unaccompanied baggage. The tribunal criticized the extended duration of the license suspension, highlighting the civil consequences for the CHA's business and stressing the importance of conducting a fair and timely investigation.

Decision and Conclusion:
After considering the submissions and the gravity of the offense, the tribunal concluded that the prolonged suspension without a proper enquiry was unwarranted. It set aside the suspension order, emphasizing the need for a fair investigation by the department to determine any wrongdoing and take appropriate legal action if necessary. The judgment highlighted the significance of following due process and ensuring that civil consequences are considered when imposing sanctions on individuals or entities involved in customs-related offenses.