2003 (3) TMI 174 - AT - Customs

Summary

Issues:
1. Suspension of Customs House Agent (CHA) license at Tuticorin branch office.
2. Suspension of CHA license at Chennai office.

Analysis:

Issue 1: Suspension of CHA license at Tuticorin branch office
The Commissioner suspended the license of the Tuticorin branch office of a CHA due to violations under Regulation 14 of the Customs House Agents Licensing Regulations, 1984. The violations included filing a Bill of Entry without proper authorization and importing cigarettes concealed in waste paper. The appellant argued that they were not aware of the concealment and that such lapses could occur due to the volume of imports they handle. The learned Advocate contended that immediate suspension was unjustified without proof of mala fides. However, the JDR cited a Tribunal decision allowing immediate suspension in certain cases. The Tribunal noted that while the Commissioner had the power to suspend under Regulation 21(2), it must be in appropriate cases with pending or contemplated inquiries. As the suspension was solely based on the Tuticorin branch office's suspension, without any violations or inquiries against the Chennai office, the Tribunal found the suspension unjustified and revoked it.

Issue 2: Suspension of CHA license at Chennai office
The Commissioner suspended the CHA license at the Chennai office based on the Tuticorin branch office's suspension, without any specific violations or inquiries against the Chennai office. The appellant argued that the suspension lacked adverse findings and was unjustified. The Tribunal referred to the Larger Bench decision, stating that post-suspension, a personal hearing should be granted to decide the continuation of the suspension. The Tribunal found no violations or pending inquiries against the Chennai office, making the suspension baseless. The Commissioner's reasoning for suspending the Chennai license solely due to the Tuticorin branch suspension was deemed inadequate. The Tribunal set aside the suspension order for the Chennai office. However, for the Tuticorin branch office, where violations were found, the Tribunal upheld the suspension but directed a post-decisional hearing for the continuation of suspension within two months.

In conclusion, the Tribunal revoked the suspension of the CHA license for the Chennai office and directed a post-decisional hearing for the Tuticorin branch office suspension.