2011 (2) TMI 1083 - AT - Customs

CHA Licence - Commissioner of Customs (General), suspended the CHA licence on the ground that it was necessary to prevent the CHA to transact business for further misuse of the CHA Licence - Commissioner s order was passed under sub-regulation (2) of Regulation 20 of the CHALR, which authorized the Commissioner in appropriate cases where immediate action is necessary, suspend the licence of a Customs House Agent where an enquiry against such agent is pending or contemplated - Held that - no enquiry whatsoever was initiated against the appellant under the CHALR, neither the investigating agency nor the adjudicating authority had passed on the requisite information to the Commissioner of Customs (General) - order of suspension set aside, appeal allowed.

Summary

Issues:
- Suspension of Custom House Agent (CHA) license under Regulation 20(2) of CHALR, 2004 without initiating any enquiry.
- Validity of the suspension order passed by the Commissioner of Customs under Regulation 20(2) of CHALR.

Analysis:
1. The appeal was filed by a Custom House Agent challenging the Commissioner's order suspending the CHA License under Regulation 20(2) of the Custom House Agent licensing Regulations (CHALR), 2004. The circumstances leading to the suspension order arose from the export of a consignment of 'Soyabean' without a 'Let Export Order'. Penalties were imposed on all parties including the CHA by the Commissioner. The Tribunal upheld the penalty on the CHA, which was later taken to the High Court, resulting in a stay of the Tribunal's order.

2. The Commissioner suspended the CHA license on the ground of preventing further misuse without hearing the CHA. The appeal challenged this suspension order. The Tribunal found valid reasons to interfere as the suspension was under Regulation 20(2) of CHALR, which allows suspension in cases where an enquiry against the agent is pending or contemplated. However, no enquiry had been initiated against the CHA under CHALR. The lack of urgency or immediacy for suspension was highlighted as the information regarding the CHA's role was received late, and the Commissioner delayed action even after being informed. The CHA was not given an opportunity to be heard before the suspension order.

3. The Tribunal set aside the suspension order, ruling that the Commissioner's conduct did not demonstrate the necessary urgency for suspension under Regulation 20(2) of CHALR. The lack of initiation of any enquiry against the CHA and the delay in taking action despite receiving information were key factors in overturning the suspension. The appeal was allowed, and the order of suspension was set aside.