2018 (8) TMI 372 - AT - Customs

Revocation of CHA license of CHA-Firm - application for CHA License was made with delay - it was alleged that the the impugned order does not deal with the arguments made in the enquiry report - principles of Natural Justice. Held that - There is merit in the enquiry report and the impugned order does not deal with the arguments made in the enquiry report. Moreover, the Ld. Counsel pointed that out of 4 partners of the firm, 3 had passed all the exams necessary for obtaining the CHL license - The facts have not been appreciated in proper perspective and the enquiry report has not been given due importance - The impugned order is set aside and the matter is remanded to give specific finding on the enquiry report - appeal allowed by way of remand.

Summary

Issues Involved:
Appeal against revocation of CHA license due to technicalities.

Detailed Analysis:

Issue 1: Revocation of CHA License
The appeal was filed by a CHA firm against the revocation of their license following the demise of one of the partners. The firm applied for renewal and submitted necessary documents, but the license was still revoked by the Commissioner of Customs. The appellant argued that the revocation was based on technicalities and pointed out that the enquiry report recommended the grant of the license. The appellant emphasized that there was no proven misconduct or loss of revenue on their part.

Issue 2: Compliance with Regulations
Regulation 15 (1) of the CHALR regulations required any change in the constitution of a firm holding a license to be reported to the Commissioner of Customs within sixty days, along with a fresh application for a license. The enquiry officer's report highlighted that the CHA firm had informed the department of the partner's demise and their decision to continue with the remaining partners, which was considered a fresh application. The officer noted that the department had engaged in clarificatory correspondence without examining the applications filed by the firm.

Issue 3: Enquiry Report and Impugned Order
The enquiry report favored the CHA firm, emphasizing that the department failed to consider the applications submitted by the firm and instead issued a Show Cause Notice for revocation. The report highlighted that the firm had fulfilled requirements like passing necessary exams and making security deposits. The Tribunal found merit in the enquiry report, noting that the impugned order did not address the arguments presented in the report. The Tribunal set aside the order and remanded the matter to give specific findings based on the enquiry report.

In conclusion, the Tribunal allowed the appeal by way of remand, emphasizing the importance of considering the enquiry report and ensuring that the facts are appreciated in the proper perspective. The judgment highlighted the necessity of following regulations and conducting a fair assessment before revoking a CHA license.