2016 (11) TMI 3 - AT - Customs

CHA - prohibitory order - requirement of issuance of Show cause notice - The order passed by the commissioner challenged only on the ground that before passing the prohibitory order against the petitioner, an opportunity of hearing was not given to the petitioner - principles of natural justice - Held that - this step has been taken in the light of the investigation being undertaken by the Director of Revenue Intelligence against various unscrupulous exporters. Some of these export consignments were handled by the appellant - reliance placed on the decision of the case A M Ahamed and Co. vs. CC, Tuticorin 2013 (6) TMI 91 - MADRAS HIGH COURT by the appellant - it was held in the context of prohibition order against the CHA, that even an administrative order affecting the life of party can be passed only after following the principles of natural justice. Even though the relevant Regulation No. 23 of CBLR 2013 does not provide for issuance of notice to satisfy the principle of natural justice, the needs to be provided - matter remanded to the adjudicating authority to re-adjudge 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 remand.

Summary

Issues:
Appeal against withdrawal of permission to operate as Customs broker without following principles of natural justice.

Analysis:
The appeal was filed against the order withdrawing the permission granted to the appellant to operate as a Customs broker at Delhi Customs without following the principles of natural justice. The appellant, holding a CHA license issued by the Commissioner of Customs, Hyderabad, was prohibited from continuing work as a Customs broker in Delhi Customs. The action was taken following an inquiry by the SIIB of Air Cargo Complex (Export), New Delhi, due to the non-functioning of the appellant from their registered address. The appellant argued that they were not issued any show cause notice or given an opportunity to present their views before the order was passed, contrary to the detailed procedure outlined in the CBLR for suspension/revocation of a Customs broker license. The appellant cited various case laws to support their contention that even administrative orders must adhere to the principles of natural justice.

The tribunal heard arguments from both sides, with the appellant's counsel emphasizing the lack of adherence to natural justice principles, while the Revenue's representative contended that as the order was administrative, no appeal could be filed against it. After reviewing the records and case laws cited by the appellant, the tribunal found that the withdrawal of permission was not in line with the principles of natural justice. Referring to the case laws cited, the tribunal highlighted the importance of following natural justice principles, including providing notice and an opportunity to be heard before passing orders that could adversely affect a party. Despite the relevant Regulation not explicitly requiring notice, the tribunal concluded that it was necessary to ensure fairness. Consequently, the tribunal set aside the impugned order and remanded the matter to the adjudicating authority for a fresh decision after providing the appellant with an opportunity to explain their position and a fair hearing.

In conclusion, the tribunal allowed the appeal by way of remand, setting aside the impugned order and emphasizing the importance of adhering to principles of natural justice even in administrative actions affecting individuals.