2008 (7) TMI 437 - HC - Customs

Suspension of Customs House Agent s licence - Held that - In the absence of contemplation of enquiry or pending enquiry, the suspension order cannot be passed by invoking the power vested with the Commissioner under Section 20(2) of the Customs House Agents Licensing Regulations, 2004 - appeal dismissed.

Summary

Issues:
Correctness of Tribunal's order suspending Customs House Agent license under Customs House Agents Licensing Regulation.

Analysis:
The judgment revolves around the correctness of the Tribunal's order dated 19-11-2007, which suspended the license granted to a partnership firm as a Customs House Agent (CHA) under the Customs House Agents Licensing Regulation, 1984. The respondent firm filed a shipping bill for export of granite tiles, but it was discovered that Red Sander Logs were being attempted to be exported in its place. The Customs Authorities seized the contraband, leading to the suspension of the CHA license by the Commissioner of Customs. The respondent appealed to the CESTAT, which set aside the suspension order, stating that it was not in accordance with the regulations. The Department challenged this decision, questioning whether the suspension was justified under Regulation 20(2) of the Customs House Agents Licensing Regulations, 2004.

The Court examined Regulation 20, which empowers the Commissioner of Customs to suspend a CHA license in cases where an enquiry against the agent is pending or contemplated and immediate action is necessary. The Court emphasized that the suspension order cannot be passed without the contemplation of an enquiry or a pending enquiry. In this case, as there was no such contemplation or pending enquiry, the Court found no grounds for interference in the impugned order. The judgment concluded that no substantial question of law was involved in the appeal, leading to the dismissal of the appeal without costs.

In summary, the Court upheld the Tribunal's decision to set aside the suspension of the CHA license, emphasizing that the power to suspend under Regulation 20(2) can only be exercised in cases where an enquiry is pending or contemplated, which was not the situation in this case. The judgment highlights the importance of adhering to the regulatory framework when taking actions against Customs House Agents, ensuring that due process is followed before imposing suspensions or revocations.