2016 (8) TMI 1363 - AT - Customs

Prohibition on operation of Customs Broker - involvement of the appellant in fraudulent export - SCN not issued - Principles of Natural Justice denied - Held that - Even though the relevant Regulation No. 23 of CBLR, 2013 does not provide for issuance of show cause notice, to satisfy the principle of natural justice, the same needs to be provided - matter remanded to the adjudicating authority to readjudge the matter after putting the appellant on notice of explaining the reasons for the action contemplated and pass a fresh order after giving them an effective hearing - appeal allowed by way of remand.

Summary

Issues:
1. Prohibition of operation of a Customs broker without following principles of natural justice.
2. Maintainability of appeal against an administrative order passed by the Commissioner.

Analysis:
Issue 1: The appeal challenged an order withdrawing permission for a Customs broker to operate, citing involvement in fraudulent exports without following principles of natural justice. The appellant argued that the licensing authority was Commissioner of Customs, Hyderabad, and highlighted case laws emphasizing the need for natural justice in administrative orders affecting parties' rights. The Tribunal reviewed the case laws and concluded that even administrative orders must adhere to principles of natural justice. Regulation 23 of CBLR, 2013 was found lacking in providing for a show cause notice, but the Tribunal deemed it necessary to ensure natural justice, setting aside the impugned order and remanding the matter for a fresh decision after affording the appellant an opportunity to be heard.

Issue 2: The Tribunal deliberated on the maintainability of the appeal against an administrative order passed by the Commissioner. The appellant's counsel reiterated their submissions, while the Revenue's representative argued that no appeal could be filed against such an order. The Tribunal considered the circumstances, noting that the impugned order was administrative in nature but emphasized the importance of natural justice even in such cases. Ultimately, the Tribunal allowed the appeal by way of remand, setting aside the impugned order and directing a reevaluation after providing the appellant with a fair hearing.

In summary, the Tribunal found the withdrawal of permission for the Customs broker to operate without following principles of natural justice to be unjust. Despite the absence of a specific provision in the regulations, the Tribunal held that natural justice must prevail, leading to the setting aside of the impugned order and a remand for a fresh decision after affording the appellant an opportunity to present their case effectively. The Tribunal also addressed the maintainability of the appeal against an administrative order, emphasizing the significance of natural justice in all proceedings, even administrative ones.