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2015 (10) TMI 1023 - AT - CustomsSuspension of CHA License - CHA failed to verify KYC checks and filed Bill of Entry in the case where the cigarettes were concealed behind the declared cargo by the importer - Held that - The ratio of this jurisdictional High Court of Madras order is squarely applicable to the present case. In spite of definite time limit of 9 months prescribed by Board circular dt. 8.4.2010 for completion of the proceedings, in the present case, we find that even after 2 years the proceedings are not completed. - by respectfully following the Hon ble High Court order (2014 (7) TMI 671 - MADRAS HIGH COURT), the suspension of CHA licence is liable to be set aside and the appellants are allowed to perform their duties as CHA - Decided in favour of appellants.
Issues Involved:
Appeal against suspension of CHA license based on alleged violations during customs clearance process. Detailed Analysis: Issue 1: Allegations leading to suspension of CHA license The appellant's CHA license was suspended due to various allegations, including failure to meet the actual importer, not following prescribed KYC checks, unilaterally determining duty liability, using another importer's DEPB scrip without authorization, and not informing Customs about concealed cigarettes. The suspension was continued based on an order by the adjudicating authority, leading to the appeal. Issue 2: Delay in conclusion of CHALR proceedings The appellant argued that there was a significant delay in concluding the CHALR proceedings, highlighting that the suspension occurred in 2012 but the proceedings were still pending in 2015. The appellant also disputed the grounds for suspension, stating that mere allegations should not lead to license suspension without proper evidence. Issue 3: Compliance with procedural requirements The appellant contended that the delay in issuing the Show Cause Notice (SCN) and the ongoing enquiry were unjustified. The appellant emphasized compliance with Customs Act provisions, verification of Importer Exporter Code (IEC), and the need for timely completion of suspension proceedings as per the relevant regulations. Issue 4: Judicial precedent and regulatory compliance The Tribunal referred to a High Court judgment dismissing a similar case and upholding the Tribunal's decision to revoke suspension in a comparable matter. The Tribunal cited a Board circular setting a time limit for completion of suspension proceedings, emphasizing the binding nature of such directives on revenue authorities. Issue 5: Tribunal's decision and legal implications The Tribunal found the delay in the proceedings unjustified, especially considering the prescribed time limit for completion. Relying on the judicial precedent and regulatory guidelines, the Tribunal set aside the suspension of the CHA license, allowing the appellant to resume CHA duties. The adjudicating authority was directed to continue proceedings under Regulation 22 of CHALR. In conclusion, the Tribunal's decision was based on the lack of timely completion of proceedings, non-compliance with regulatory time limits, and the appellant's right to resume CHA operations. The judgment emphasized the importance of following procedural requirements and ensuring timely resolution of suspension cases in customs matters.
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