9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (8) TMI 110 - AT - CustomsRenewal of CHA License - Regulation 9(2) of Customs Brokers Licensing Regulation, 2013 - case of Revenue is that for seeking renewal of the license, Regulation 5 of CBLR only is applicable - revocation of License - Held that - There has been negligence on part of the custom broker in conducting KYC of the EIC holder and he has failed to verify the functioning at the given address of the importer. Thereby, the contravention of Regulation (n) of CBLR read with Circular No. 9 of 2010-Cus is held to have been proved. The mensrea in respect of all the allegations as stated in the Show Cause Notice dated 01.06.2018 is held to have been established beyond doubt - the appellant has failed to observe obligation (d), (e), and (f) of Regulation 14 of CBLR. Renewal of License - appellant has challenged the same on the ground that he cannot be vexed twice for the same set of facts - Held that - The said ground is not sustainable in the given circumstances as non renewal of license under Order 9 Sub-Rule 2 of CBLR and the revocation thereof are two different things. For this reason, the ground taken by appellant that the license has not been revoked but the suspension thereof, does not extend an unfettered right to the CHA to seek renewal of the said license at the time of its expiry without meeting the mandatory criteria for the same. It is apparent from CBL Regulations that the provision under which the renewal can be sought is again Regulation 5 only where a fresh license can be obtained by the applicant with the only difference that Regulation 4 shall not be applicable in case of renewal. The non renewal and revocation are two separate things under two distinct provisions of the Regulation, question of appellant to have been vexed twice, as is raised by him, is not sustainable. Appeal dismissed - decided against appellant.
Issues:
Appeal against rejection of CHA license renewal under Customs Brokers Licensing Regulation, 2013 (CBLR) - Allegations of submitting incorrect details/custom declarations - Penalty imposed on appellant - Appellant's arguments for renewal based on court decisions - Commissioner's justification for rejection - Interpretation of CBLR provisions for renewal criteria - Observations on appellant's failure to fulfill obligations - Analysis of Regulation 9 for license renewal validity. Detailed Analysis: 1. Allegations and Penalty Imposition: The appeal concerns the rejection of a Custom House Agent (CHA) license renewal under CBLR due to allegations of submitting incorrect details/custom declarations. The appellant faced a penalty of ?50,000 under Regulation 22 of CBLR for failing to verify the identity of the importer while clearing consignments. The Order dated 02.02.2016 highlighted negligence in conducting KYC and failure to verify the importer's address, leading to contravention of regulations. 2. Appellant's Arguments and Legal Precedents: The appellant argued for renewal based on court decisions emphasizing that once the suspension is set aside, denial of renewal on the same allegations is untenable. Reference was made to the Madras High Court case and the principle of not being vexed twice on the same facts. Additionally, reliance was placed on a High Court judgment stating that non-reasoned judgments violate natural justice. 3. Commissioner's Justification and Criteria Interpretation: The Commissioner justified the rejection citing Regulation 9(2) of CBLR for renewal denial. The Commissioner emphasized that the penalty imposed on the appellant justified the rejection as per the renewal criteria under Regulation 5 of CBLR. The Commissioner argued that the appellant's penalty constituted a valid reason for denial. 4. Observations on Obligations and Renewal Criteria: The tribunal observed that the appellant failed to fulfill obligations under Regulation 14 of CBLR, leading to the penalty imposition. The tribunal differentiated between non-renewal and revocation of the license, stating that the appellant's penalty and misconduct allegations warranted the denial of renewal. 5. Interpretation of Regulation 9 for License Validity: Regulation 9 empowers the Commissioner to renew a license based on satisfactory performance and absence of misconduct complaints. The tribunal opined that the Commissioner rightfully denied renewal due to the appellant's penalty for misconduct. The tribunal concluded that the rejection was valid under the provisions of CBLR. 6. Final Decision: After thorough analysis, the tribunal upheld the rejection of the license renewal, stating that the Commissioner's decision was justified. The tribunal rejected the appeal, emphasizing that the non-renewal and revocation were distinct under CBLR provisions, and the appellant's penalty constituted valid grounds for denial. In summary, the tribunal's decision upheld the rejection of the CHA license renewal based on the appellant's penalty for misconduct and failure to meet renewal criteria under CBLR. The tribunal differentiated between non-renewal and revocation, concluding that the rejection was valid under the regulatory provisions.
|
