2016 (3) TMI 771 - HC - Customs

Writ petition - Validity of order - Passed in violation of natural justice - Suspension of CHA licence by invoking provisions of Regulation 20(2) of the Customs House Agent - Enquiry conducted without issuing any show cause notice under section 22(1) ibid and an opportunity of personal hearing - Held that - there is clear violation of principles of natural justice. Therefore, the petitioner should be given relief in the writ petition filed under Article 226 of the Constitution of India and the Tribunal s order is set aside. - Matter remanded back

Summary

Issues:
Violation of principles of natural justice in the suspension and revocation of Customs House Agent Licence.

Analysis:
The petitioner challenged the order of suspension of their Customs House Agent (CHA) licence, contending that it violated principles of natural justice. The respondent suspended the CHA licence based on alleged violations of regulations and failure to fulfill obligations. The petitioner participated in a personal hearing and submitted written responses, but the suspension was confirmed. The petitioner appealed to the Customs, Excise and Service Tax Appellate Tribunal, claiming that no show cause notice was issued before the suspension. The Tribunal eventually allowed the appeal, but the respondent later revoked the licence citing its expiry. The petitioner argued that the appointment of an Enquiry Officer without issuing a show cause notice to conduct an enquiry further violated natural justice principles.

The High Court acknowledged the petitioner's grievance regarding the lack of a show cause notice and opportunity for a personal hearing during the enquiry process. The Court emphasized that the absence of a show cause notice indeed amounted to a violation of natural justice. The respondent did not address this issue in their counter. The Court found merit in the petitioner's argument and held that the writ petition under Article 226 of the Constitution of India was maintainable due to the clear violation of principles of natural justice.

The Court set aside the impugned order and directed a fresh enquiry to be conducted by the Enquiry Officer. It mandated the Enquiry Officer to issue a show cause notice to the petitioner, allow them to respond, and provide a proper opportunity for a personal hearing. The Court instructed the Enquiry Officer to decide the matter afresh on its merits and in accordance with the law. Subsequently, the respondent was directed to consider the Enquiry Officer's report and make a fresh decision in compliance with legal principles. The Court granted relief to the petitioner, allowing the writ petition and remanding the matter back to the respondent for fresh consideration, ensuring due process and adherence to natural justice principles.