2009 (9) TMI 555 - HC - Customs

Suspension of- The power of the Commissioner of Customs to suspend a Customs House Agent s Licence has been questioned. Requisition of regulation 22 of Custom House Agents Licensing Regulation, 2004 need not be complied with in cases requiring immediate suspension. Held that- consignment cleared by employee and not known how unauthorized person allowed to clear goods. Contravention alleged, prima facie not warranting immediate suspension without hearing. Suspension of licence stayed.

Summary

Issues:
Challenge to suspension of Customs House Agent's Licence under Regulation 20(2) of the Customs House Agents Licensing Regulations, 2004.

Analysis:
The High Court of Calcutta addressed the challenge against an order suspending a Customs House Agent's Licence. The court acknowledged the power of the Commissioner of Customs to suspend such a license, emphasizing that this authority exists, especially in cases requiring immediate action without full compliance with all regulations. However, the court highlighted that the power to suspend a license is significant and should be exercised cautiously due to its serious consequences for the licensee. The court emphasized that orders of suspension without prior opportunity for a hearing should be reserved for exceptional cases, where allowing the agent to continue business would not be expedient based on the alleged misconduct or offense.

In the specific case under review, the court examined the circumstances surrounding the suspension order. It noted that the clearing agent, who had their license suspended, was involved in clearing consignments on behalf of clients. The court differentiated between the responsibilities of a clearing agent and the actions of importers or exporters. It highlighted that penalizing a clearing agent for the actions of others, without any fault on the agent's part, would be unjust. The court also noted that the importer in this case had illegally imported restricted goods without proper permissions, leading to the view that the consignments were liable to confiscation.

The court further delved into the allegations against the clearing agent, focusing on the involvement of an unauthorized person in the clearance process. The court scrutinized the statements made during the investigation, where it was alleged that the clearing agent allowed an individual without the requisite license to handle shipping documents. The court considered the defense put forth by the petitioners, emphasizing the importance of compliance with the applicable regulations in determining any contraventions.

Ultimately, the court found that the allegations in the impugned order did not warrant immediate suspension of the clearing agent's license without providing an opportunity for a hearing. Consequently, the court issued an interim order restraining the authorities from enforcing the suspension order until a specified date, allowing for further proceedings in accordance with the relevant regulations. The court set deadlines for the submission of affidavits and scheduled the matter for a future hearing, ensuring all parties acted in accordance with the court's directives.