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2017 (11) TMI 258 - HC - CustomsRevocation of CHA License - Jurisdiction - power of Commissioner of Customs (General), Mumbai to revoke license - order of revocation of license was earlier passed by the Commissioner of Customs (General), Mumbai was set aside by the Appellate Tribunal on 18th June, 2012 on the ground that the Commissioner of Customs, Mumbai lacks jurisdiction as the license was issued by the Commissioner of Customs, Pune - Whether the Appellate Tribunal ought to have given an opportunity to the Appellant to issue a fresh show cause notice to the Respondent - principles of Natural Justice. Held that - It is true that in the first show cause notice, violation of clauses (a), (d) and (e) of Regulation 13 was alleged. But when the said show cause notice was issued, the Enquiry Report was not available which is referred to in the second show cause notice which holds that the allegation of breach of clauses (a) and (d) of Regulation 13 has not been proved. Therefore, by no stretch of imagination, it can be held that the Appellant was put to notice that the Commissioner intended to disagree with the findings on the allegations recorded by the Enquiry Officer as far as clauses (a) and (d) of the Regulation 13 are concerned - the part of the impugned order which proceeds to set aside the order of revocation is legal and valid and no interference is called for. The Appellate Tribunal ought to have granted an opportunity to the Commissioner of Customs to issue a fresh or supplementary show cause notice putting the Respondent to the notice that while deciding the first show cause notice, the Commissioner intends to disagree with the findings recorded by the Enquiry Officer. Appeal allowed in part.
Issues:
1. Revocation of Custom House Agent (CHA) license. 2. Breach of principles of natural justice. 3. Opportunity to issue a fresh show cause notice. Revocation of Custom House Agent (CHA) license: The case involved the revocation of a Custom House Agent license granted to the Respondent under the Custom House Agents Licensing Regulations, 2004. The Commissioner of Customs, Pune issued a show cause notice on 10th January, 2012, alleging contravention of clauses (a), (d), and (e) of Regulation 13. Subsequently, another show cause notice was issued on 19th October, 2012, based on an Enquiry Officer's report. The Commissioner revoked the license on 28th March, 2013, citing violations of the regulations. The Respondent appealed to the Customs, Excise and Service Tax Appellate Tribunal, which set aside the revocation order due to a procedural lapse regarding natural justice principles. Breach of principles of natural justice: The Appellate Tribunal found that the Commissioner of Customs did not provide an opportunity to the Respondent to respond to the Enquiry Officer's report before revoking the license. The Tribunal held that the Commissioner should have notified the Respondent of the intention to disagree with the report's findings. The lack of such notice constituted a breach of natural justice principles, leading to the setting aside of the revocation order. Opportunity to issue a fresh show cause notice: The High Court agreed with the Tribunal's decision on the breach of natural justice principles but directed that the Commissioner should be given the opportunity to issue a fresh or supplementary show cause notice. The Court emphasized that the Respondent should be informed of the intention to disagree with the Enquiry Officer's findings. Any new notice should allow the Respondent to contest the charges, including addressing any delays in the process. The Court clarified that the validity of the license would not be affected by the judgment, as the revocation was set aside solely on procedural grounds. In conclusion, the High Court partially allowed the appeal, confirming the setting aside of the revocation order while directing the Commissioner to issue a new show cause notice with proper notice to the Respondent. The Court highlighted the importance of adhering to natural justice principles in administrative proceedings concerning license revocation.
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