2017 (4) TMI 681 - HC - Customs

Revocation of CHA licence - CHA claims that those charges which are held to be proved are not serious enough to warrant the strict penalty of revocation of the licence - Held that - though there was a difference of opinion, but the majority view is that there is a technical breach or violation, then, this Appeal does not raise any substantial question of law - We cannot re-appreciate the factual findings and come to a different conclusion - there is no merits in this Appeal - appeal dismissed - decided against Revenue.

Summary

Issues:
Challenging CESTAT order on charges against Customs House Agent.

Analysis:
The High Court heard an appeal by the revenue challenging a CESTAT order that partially proved charges against a Customs House Agent, deeming them insufficient for license revocation. The respondent's license was revoked by the Commissioner of Customs for violating specific regulations. The Tribunal's Members were divided in their opinions, with one Member finding the charges unproven, another holding them proved, and a third Member agreeing on some violations but deeming them not serious enough for license revocation.

The first charge involved the violation of regulation 12, prohibiting license transfer, with conflicting views on whether the agent sublet the license. The second charge was about unauthorized goods clearance due to the revenue's failure to produce necessary evidence, leading to an adverse inference. The third charge stemmed from the second, violating regulations 13(a) and 19(8) regarding full control of the Customs House Agent. The Member (Judicial) found no clinching evidence to hold the agent guilty.

While the Member (Technical) upheld all charges and the penalty, the third Member disagreed on some charges, including lack of sufficient details and lack of supervision. The third Member agreed with the Member (Judicial) on certain findings but sided with the Technical Member on breach and violations. The High Court concluded that the revocation of the license for two years was an adequate punishment, considering the technical breaches and violations.

The Court emphasized that the majority view of technical breaches did not raise substantial legal questions, as factual findings could not be re-evaluated. Hence, the Court found no merit in the revenue's appeal and dismissed it without costs.