2007 (8) TMI 419 - HC - Customs

Customs House Agent License - CHA license cancelled on the ground that the assessee has sublet his licence - CESTAT has restored the license - grievance of the revenue is that the subletting of CHA license is a serious offence and moreover the assessee is a habitual offender Held that - assessee has undergone punishment by way of suspension of license for more than three years for the offence committed, it is just and proper to restore the license.

Summary

Issues:
Appeal against the restoration of CHA license by CESTAT after cancellation due to subletting violation.

Analysis:
The appeal before the High Court of Bombay involved the Commissioner of Customs, Mumbai challenging the order of the CESTAT restoring the CHA license to the respondent/assessee, which had been cancelled based on the violation of CHA regulations by subletting the license. The main contention of the revenue was that subletting the CHA license is a serious offense, and the assessee had a history of committing such offenses, making restoration unjustifiable.

Upon reviewing the CESTAT's order, the High Court found that the Tribunal's exercise of discretion was just and proper. The Tribunal considered the fact that the assessee had already faced punishment through a license suspension for over three years for the same offense. The High Court noted that while the revenue argued the assessee had previous similar offenses, those adjudication orders had been set aside by the Tribunal for fresh adjudication. Therefore, the High Court deemed the Tribunal's decision to restore the license as reasonable and based on the circumstances presented.

Consequently, the High Court dismissed the appeal, affirming the CESTAT's decision to restore the CHA license to the assessee. The Court found no merit in the revenue's argument against the restoration, considering the past suspension as a sufficient punishment and justifying the restoration of the license in this case.