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2015 (12) TMI 1146 - HC - CustomsSuspension of CHA licence - Rule of consistency - violations of various conditions by the CHA - Held that - In the affidavit in reply it has been asserted that a look at the charges against S.P. Pawar & Sons would show that similar are the violations alleged to have been committed by the present respondents. Hence, a different treatment is not warranted. We are of the opinion that the case of S.P. Pawar & Sons and the present appellant is more or less identical. Though a larger issue of discrimination in the matter of punishment need not be gone into, what we find is that the consistent view of the Tribunal in such cases and in similar circumstances was not found to be perverse or vitiated by any serious error of law apparent on the face of the record. it is for the Authorities issuing the licence to inquire into the allegations of violations thereof and equally into the lapses committed during the operation of the licence. However, they have certain amount of discretion in matters of this nature and equally while imposing penalty. That should not be lightly interfered with. However, that does not mean that once the orders of the Authorities like Commissioner are capable of being challenged in further appeal, then, the Appellate Tribunal s powers are in any way restricted or circumscribed. In order to render substantial justice and if the Tribunal feels that there is a certain period which has gone by during which the agent has been out of business, then, that is sufficient penalty but such a view cannot be taken in all cases and as a matter of rule. However, that having been taken in this case consistent with the material produced and seriousness of the charges, that we are of the view that substantial question of law cannot be answered in favour of the Revenue - Tribunal s order in the present case shall be construed as substitution of the penalty imposed, namely of permanent revocation of Respondent s CHA Licence with partial revocation from 20th December, 2007 till 3rd March,2011 and forfeiture of entire security deposit - Decided in favour of appellant.
Issues Involved:
1. Validity of the Customs House Agent Licence revocation. 2. Compliance with the principles of natural justice. 3. Proportionality of the penalty imposed. 4. Consistency in the application of penalties among similarly situated agents. Issue-wise Detailed Analysis: 1. Validity of the Customs House Agent Licence revocation: The Customs Appeal challenges the order passed by the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) which set aside the revocation of the Customs House Agent Licence. The respondent was accused of aiding and abetting import duty evasion under the Advance Licence scheme. The Commissioner of Customs initially suspended the licence under Regulation 20(2) of the Customs House Agents Licensing Regulations, 2004, pending inquiry. The Inquiry Officer found that Articles of Charge I, II, and IV were not proved, but Article III was proved. The Commissioner disagreed and issued a final order revoking the licence on 20.12.2007, which was later overturned by CESTAT. 2. Compliance with the principles of natural justice: The Commissioner of Customs followed due process by issuing a disagreement memo and giving the respondent an opportunity to reply. However, the Tribunal found that the Inquiry Officer's findings, which exonerated the respondent on several charges, were not adequately considered by the Commissioner. The Tribunal emphasized that the statements of employees acting on behalf of the respondent should be seen in the context of their roles as employees, not independent operators. 3. Proportionality of the penalty imposed: The Tribunal concluded that the charges proved were not severe enough to warrant the permanent revocation of the licence. The Tribunal noted that the respondent had already suffered a significant penalty by being out of business from 20.12.2007 to 3.3.2011. It was held that forfeiture of the security deposit was a sufficient penalty. The Tribunal's decision was based on the principle that penalties should be proportional to the severity of the violations. 4. Consistency in the application of penalties among similarly situated agents: The Tribunal and the High Court referenced similar cases where agents faced identical charges but received different penalties. In cases like "S.P. Pawar & Sons" and "M.D. Shipping Agency," the penalties were limited to forfeiture of security deposits and temporary suspension, rather than permanent revocation. The High Court found that the Tribunal's approach in the present case was consistent with its decisions in similar cases, thereby ensuring fairness and uniformity in the application of penalties. Conclusion: The High Court upheld the Tribunal's decision, finding no perversity or lack of material in its conclusions. It affirmed that the respondent had suffered enough punishment and that the penalty of licence revocation from 20.12.2007 to 3.3.2011, along with the forfeiture of the security deposit, was sufficient. The appeal by the Revenue was dismissed, and the Tribunal's order was maintained, emphasizing the importance of proportionality and consistency in the imposition of penalties.
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