2014 (9) TMI 440 - HC - Customs

Cancellation of licence as Customs House Agent - according to revenue the role played by the said agent in misdeclaration of goods under export in respect of a shipping bill - revenue aggrieved by order of tribunal - Held that - the matter was decided by the Tribunal in most unsatisfactory and hasty manner. The respondent approached the Tribunal requesting that the order impugned in the appeal preferred by it should be stayed. It is that limited request which has to be considered by the Tribunal. In considering that request the Tribunal thought that the matter involves very short point and can be conveniently disposed of at the stage of admission. It proceeded to dispose of the same finally. It is clear that when the appeal was being decided finally, the Tribunal relied only on the record produced by the respondent and not by the adjudicating authority. Thus, the complete record and proceedings were never called for. Secondly, the Tribunal if satisfied that principles of natural justice have been violated, then should have restricted its finding and conclusion only to that issue. The Tribunal then was not competent to express any final opinion on the merits of the charges. The Tribunal in doing that has clearly exceeded its jurisdiction. Order of the tribunal quashed - appeal restored to file of the Tribunal for being decided afresh - Decided in favor of revenue.

Summary

Issues:
1. Tribunal's decision to dispose of the appeal finally without considering stay application.
2. Violation of principles of natural justice and jurisdictional limits by the Tribunal.
3. Restoration of license and rendering of appeal infructuous.
4. Substantial questions of law raised for admission of appeal.
5. Quashing and setting aside the Tribunal's order.

Issue 1: Tribunal's decision to dispose of the appeal finally without considering stay application
The High Court criticized the Tribunal for hastily disposing of the appeal without considering the stay application. The Tribunal's decision to rely only on the respondent's record and not that of the adjudicating authority was deemed unsatisfactory. The High Court held that the Tribunal exceeded its jurisdiction by expressing a final opinion on the merits of the charges without a complete hearing. The Tribunal's failure to consider crucial documents and certificates issued by the Laboratory was highlighted, leading to the conclusion that the Tribunal's order needed to be quashed and set aside.

Issue 2: Violation of principles of natural justice and jurisdictional limits by the Tribunal
The High Court found that the Tribunal's decision was based on incomplete information and a lack of consideration for principles of natural justice. By not restricting its findings to the issue of violation of natural justice, the Tribunal overstepped its jurisdiction by expressing final opinions on the charges. The High Court emphasized that the Tribunal should have provided a complete opportunity for both sides to present their case and should not have rendered perfunctory findings. The failure to consider crucial evidence and documents led to the conclusion that the Tribunal's decision must be set aside.

Issue 3: Restoration of license and rendering of appeal infructuous
The respondent's license was restored by the licensing authority during the pendency of the appeal, leading to the argument that the appeal had become infructuous. The respondent expressed readiness for a complete hearing on the merits of the charges. The High Court, after hearing both parties, decided to quash and set aside the Tribunal's order and restore the appeal to the Tribunal for a fresh decision in accordance with the law.

Issue 4: Substantial questions of law raised for admission of appeal
The High Court admitted the appeal based on substantial questions of law raised, including the justification of the Tribunal's final decision at the stay application stage, the requirement for a complete opportunity for both sides before rendering a final conclusion, and the Tribunal's potential misdirection in law and exceeding its jurisdiction. The Court emphasized the importance of a fair and thorough hearing in such matters.

Issue 5: Quashing and setting aside the Tribunal's order
Ultimately, the High Court quashed and set aside the Tribunal's order, restoring the appeal to the Tribunal for a fresh decision. The Court directed the Tribunal to decide the appeal without being influenced by previous findings and observations, ensuring a fair and unbiased hearing for both parties. The Court also instructed the authorities to continue the restoration of the license pending the final order in the appeal, without prejudice to the rights and contentions of both sides.