2013 (12) TMI 705 - AT - Customs

Suspension of license - Non complaince of norms laid down in the regulation and the circular issued by C.B.E. & C. - Held that - The facts unearthed by Revenue so far does not indicate any active involvement by the Appellant in doing smuggling or facilitating smuggling. The only case brought out so far is that the Appellant had handled three consignments in May 2010 of an importer who later on filed Bills of Entry in his own name and in such Bills of Entries some discrepancies (not clearly specified by Revenue) has been detected. We also note that the license of the Appellant has remained suspended for almost one year and the Revenue had ample opportunity to conduct necessary investigation against any involvement by the Appellant. We are of the view that continuing suspension of the licence will be unduly harsh based on the evidence that has been so far brought to the notice of the Tribunal. Therefore, we are of the view that the suspension of their license should be revoked and we order accordingly. It is made clear the Revenue is at liberty to issue notice under Regulation 22 for revocation of license of the Appellant, if their involvement in any smuggling activity can be proved by acceptable evidence - Decided in favour of Appellant.

Summary

Issues:
Suspension of Custom House Agent license under CHALR for non-compliance with norms and circulars, involvement in smuggling activity, revocation of suspension order, undue hardship caused to the Appellant, role of the Appellant in facilitating smuggling, sufficiency of evidence against the Appellant, continuation of license suspension, potential revenue loss due to smuggling activities.

Analysis:

The Appellant, a Custom House Agent, had their license suspended for not complying with regulations and circulars before conducting business for a client involved in suspected smuggling activities. The suspension was confirmed by the Commissioner, leading the Appellant to appeal before the Tribunal. The primary issue revolved around the Appellant's failure to follow the prescribed norms, as detailed in the Customs House Agents Licensing Regulations, 2004, and the subsequent suspension of their license.

The Appellant argued that they had only processed a few consignments for the client in question, with no evidence of mis-declaration or duty evasion. They contended that they had taken adequate steps to verify the client's identity and address before conducting business. The Appellant highlighted the absence of conclusive proof linking them to any smuggling activities and emphasized the adverse impact of the license suspension on their business and employees.

On the other hand, the Departmental Representative argued that the Appellant had not met the client in person and had relied on documents submitted by an individual who was allegedly involved in the smuggling activities. The Department stressed the importance of Custom House Agents knowing their clients to prevent revenue leakage due to smuggling. They maintained that the investigation into potential revenue loss and the Appellant's role in the matter was ongoing, warranting the continuation of the license suspension.

After considering both arguments, the Tribunal found no substantial evidence implicating the Appellant in smuggling activities. They noted that the Appellant's license had been suspended for almost a year without concrete findings against them. The Tribunal deemed the continued suspension unduly harsh based on the available evidence and decided to revoke the suspension order. However, they allowed the Revenue to issue a notice for license revocation if the Appellant's involvement in smuggling activities could be proven with acceptable evidence in the future.

In conclusion, the Tribunal allowed the Appellant's appeal by setting aside the suspension order, emphasizing the importance of sufficient evidence and fairness in license suspension cases involving allegations of smuggling activities.