2001 (1) TMI 404 - AT - Central Excise

Summary

Issues Involved:
Renewal of Customs House Agent Licence based on performance criteria.

Analysis:
The appeal was filed to determine whether the Customs House Agent Licence should have been renewed. The Appellants argued that their license, initially granted in 1989 and renewed twice, was not renewed in 2000 due to unsatisfactory performance in 1998 and 1999. They contended that the Commissioner has discretionary power under Regulation 12(2) to renew licenses based on satisfactory performance criteria. The Appellants highlighted their handling of cargo valued at Rs. 9.19 crores over five years, exceeding the Rs. 50 lakhs per year norm, and explained the decline in business in 1998-1999 due to a partner's parental sickness. They referenced a similar case where a license was renewed despite lower business volume, emphasizing the discretionary nature of renewal decisions under Regulation 12(2).

The Respondent argued that as per Public Notice No. 33/96 and Regulation 12(2), Customs House Agents must meet specified business norms annually for license renewal. They pointed out the declining business trend of the Appellants, falling below the Rs. 50 lakhs norm in 1999, indicating non-compliance with renewal criteria.

The Tribunal considered the arguments and the norms specified in Public Notice 33/96, which require a licensee to clear shipments of a value not less than Rs. 50 lakhs per year for license renewal. Acknowledging the Appellants' explanation for the reduced business in 1998-1999, the Tribunal noted their overall performance of handling cargo worth over Rs. 9 crores in the past five years. Given the significant business volume after the partner's return to work, the Tribunal granted the Appellants another chance by setting aside the impugned order and renewing their license for one year. The Tribunal directed a review of their performance before future renewals, allowing the Appellants the opportunity to demonstrate sustained compliance with renewal criteria.

Additionally, the Tribunal granted the Appellants' request for hand-delivery of the order considering the livelihood implications involved.