2015 (8) TMI 1523 - AT - Customs

Revocation of CHA License - forfeiture of security deposit - HELD THAT - The licence has been inoperative for more than 4 years. More than 2 years have passed since the revocation was set aside by the Tribunal. In such cases, where the question of livelihood is involved, in the interest of justice it would be only fair to restore the operation of the licence till the final verdict - The restoration of operation of licence will not prejudice the interest of Revenue, till final verdict of the Hon ble High Court. We observe that in cases of Excise evasion, the factory of assessee is not shut down. Therefore in terms of equity, it is only fair and just that the licence is allowed to be operative in terms of the Tribunal s Order. The Commissioner, under Rule 41 of the Customs, Excise and Service Tax Appellate Tribunal (Procedure) Rules, 1982 is directed to give effect to our Order dated 18-3-2013 to secure the ends of justice.

Summary

Issues:
Revocation of CHA licence, prolonged non-operation of licence causing loss, challenge before High Court, restoration of licence operation, equity in allowing licence to be operative.

Analysis:
The Appellate Tribunal CESTAT MUMBAI, comprising Shri P.S. Pruthi and Ramesh Nair, delivered a judgment in response to a miscellaneous application filed for implementation of a previous order. The appellant's counsel highlighted the irreparable loss and hardship suffered due to the prolonged non-operation of the CHA licence, affecting both the appellant and its employees. On the other hand, the department's representative mentioned the challenge before the Hon'ble Bombay High Court regarding the Tribunal's earlier order. Reference was made to a similar case where the High Court observed that the Tribunal should not intervene when an appeal is pending.

The Tribunal noted that the CHA licence had been inactive for over four years, even though the revocation had been set aside more than two years ago. Considering the impact on livelihood, the Tribunal deemed it just to allow the licence to operate until a final decision is reached. Drawing a parallel with a previous High Court judgment, the Tribunal emphasized that the restoration of licence operation would not harm the Revenue's interests. The Tribunal highlighted the distinction in each case's facts and the absence of a stay order by the High Court, emphasizing the need for equity in allowing the licence to function as per the Tribunal's order.

In line with the principles of justice and equity, the Tribunal directed the Commissioner to implement their order from 18-3-2013 under Rule 41 of the Customs, Excise and Service Tax Appellate Tribunal (Procedure) Rules, 1982 to ensure the ends of justice are secured. The judgment was pronounced on 27-8-2015, emphasizing the importance of restoring the licence's operation in cases where livelihood and fairness are at stake.