2016 (4) TMI 186 - AT - Customs

Suspension of CHA licence - out of business for nearly 7.5 yrs - there have been delays at entry levels and during this process valuable right to livelihood of the applicant has been denied to them - Held that - this process has taken almost four years. The issue regarding delays by the revenue impinging upon the fundamental right to livelihood of the CHA was raised. There is a total lack of responsibility and accountability on behalf of the revenue officers while conducting the proceedings under various regulations governing the CHAs. Therefore, by following the decision of coordinate bench in the case of G&S International 2015 (2) TMI 1069 - CESTAT NEW DELHI and echoing their angst it is only suggested to the appellant to approach such fora which are endowed with the necessary powers not only to compel such public authorities to observe judicial discipline but also ensure that such public authorities are visited with appropriate consequences for such conduct.

Summary

Issues:
1. Implementation of Tribunal's order for restoration of license.
2. Delay in inquiry proceedings and decision-making by the Commissioner.
3. Accountability and responsibility of revenue officers in following time limits.
4. Lack of enforcement of higher forum orders by revenue authorities.

Analysis:

Issue 1: Implementation of Tribunal's order for restoration of license:
The case involved M/s. Skylark Travels Pvt. Ltd., a Customs House Agent (CHA) licensee, whose license was suspended in 2008. Despite the Tribunal's order directing license restoration in 2015, the Commissioner failed to implement it. The revenue filed an appeal before the High Court seeking a stay, citing a previous case precedent. The Tribunal emphasized the importance of promptly restoring the license to prevent undue punishment to the applicant.

Issue 2: Delay in inquiry proceedings and decision-making by the Commissioner:
The inquiry officer took over 2 years to submit the report, leading to significant delays in the process. The Commissioner's failure to consider evidence and provide detailed findings resulted in the order being remanded. The lack of time limits in the CHA Licensing Regulations (CHALR) 2004 highlighted the need for timely decision-making, which was later addressed in the amended regulations in 2010. The Tribunal criticized the delays, emphasizing the impact on the applicant's livelihood.

Issue 3: Accountability and responsibility of revenue officers in following time limits:
The case highlighted the revenue officers' lack of responsibility in adhering to the prescribed time limits for inquiry proceedings and decision-making under CHALR. The Tribunal stressed the importance of following higher appellate authorities' orders and maintaining judicial discipline to prevent undue harassment to CHAs. The failure to enforce time limits led to prolonged proceedings, affecting the fundamental right to livelihood.

Issue 4: Lack of enforcement of higher forum orders by revenue authorities:
The judgment underscored the revenue's disregard for quasi-judicial orders, as seen in the case of G&S International. The Tribunal expressed concern over the revenue's non-compliance with orders, leading to judicial indiscipline and undermining the rule of law. The lack of enforcement mechanisms for Tribunal judgments highlighted the need for authorities with the power to ensure compliance and accountability.

In conclusion, the judgment emphasized the need for timely implementation of Tribunal orders, adherence to prescribed time limits, and enforcement of higher forum decisions to uphold judicial discipline and protect the rights of license holders.