2011 (6) TMI 645 - AT - Customs

Suspension of CHA licence - licence stands suspended for almost 21 months Held that - no indication regarding any time frame within which a final SCN will be issued. In such circumstances the balance of convenience shifts in favour of the Appellant, since he has been deprived of earning his livelihood due to interim orders, suspension order revoked, order is without prejudice to the department s right to issue notice for final suspension or revocation and pass appropriate orders after considering the submission of the Appellant, Appeal is thus allowed

Summary

Issues:
Appeal against suspension of Customs House Agent license.

Analysis:
The appeal was lodged challenging the suspension of the license granted to the Appellant to operate as a Customs House Agent. The suspension was confirmed by the Commissioner after a personal hearing granted to the Appellant. The main charge against the Appellant was related to the misuse of the license by another firm, where the persons authorized to use the license were aware of misdeeds by an importer and were involved in abetting and bribing customs officers. The customs duty evaded was reported to be substantial, amounting to over 30 crores.

The Appellant raised concerns regarding the lack of action against the officers who were bribed, the completion status of the investigation, and the Department's readiness to issue a notice under the Customs House Agents Licensing regulations for final suspension or revocation of the license. The Appellant pointed out that the guidelines provided by C.B.E.C. in Circular No. 9/2010 stipulated that a show cause notice should have been issued within nine months of receiving a report on the offense, which was not adhered to in this case.

The license had been under suspension for nearly 21 months without any indication of a timeframe for issuing a final show cause notice. Considering the Appellant's deprivation of earning a livelihood due to interim orders, the balance of convenience was deemed to favor the Appellant. Consequently, the suspension order was revoked. However, it was clarified that the revocation did not prejudice the Department's right to issue a notice for final suspension or revocation in the future based on the Appellant's submissions. As a result, the appeal was allowed by setting aside the impugned order.