2011 (9) TMI 726 - AT - Customs

Period of Limitation - 3 years passed custom authority not initiated inquiry - Held That - Immediate appointment of inquiry officer, shall complete post suspension inquiry within 3 months after giving reasonable opportunity to appellant to present his case.

Summary

Issues:
- Appeal against suspension of CHA license
- Misuse of Import-Export Code (IEC)
- Delay in initiating inquiry by customs authorities

Analysis:
1. Appeal against suspension of CHA license:
The appeal was directed against the Order-in-Original passed by the Commissioner of Customs suspending the operation of the CHA license held by the appellant firm. The investigation revealed that the CHA firm was actively involved in the misuse of IECs for illegal imports. The appellant's counsel argued for setting aside the suspension order, citing the delay in initiating the inquiry as per the Custom House Agents Licensing Regulations, 2004 (CHALR). The Revenue opposed the plea, supporting the findings in the impugned order.

2. Misuse of Import-Export Code (IEC):
The investigation uncovered that the CHA firm misused the IEC of another company for the import of goods by a different individual for monetary gains. The Manager of the CHA firm admitted to this misuse and revealed similar instances of misusing IECs of other firms for importation. This active connivance in illegal imports led to the Commissioner suspending the CHA license of the appellant firm.

3. Delay in initiating inquiry by customs authorities:
The appellant highlighted the delay in the customs authorities initiating the inquiry as required under Regulation 22 of the CHALR, despite almost three years passing since the suspension order. In the interest of equity and justice, the Tribunal directed the Commissioner to appoint an Inquiry Officer promptly. The Inquiry Officer was instructed to complete the post-suspension inquiry within three months and submit the report, ensuring the appellant had a reasonable opportunity to present their case. The Commissioner was further directed to proceed in accordance with the time limits provided in Regulation 22 of the CHALR after receiving the inquiry report.

In conclusion, the appeal was disposed of with the direction for the customs authorities to conduct a thorough inquiry promptly and adhere to the regulatory procedures in handling the suspension of the CHA license.