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2003 (10) TMI 439

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..... that the appellants have not transacted any business as CHA at Kandla Custom House throughout the year 1998-99 and hence have failed to fulfil the norms fixed under Regulation 12(2) by the Commissioner, as stated in Public Notice No. 21/96. The appellants pleaded before him that due to cyclone in Kandla, they could not transact business in that port and hence the shortfall, if any, in the volume of transaction should be condoned and their licence renewed. The Commissioner held that after the cyclone at Kandla, the port was recommissioned immediately from 26-6-1998 and therefore the plea that due to cyclone, the appellants could not transact business was not correct. The second plea of the appellants before the Commissioner was that they hold a CHA licence issued to them under Regulation 10(2) of the CHALR at Mumbai Custom House. They have transacted business at Mumbai Custom House and while computing the volume of transaction at Kandla, the Commissioner should take into consideration the business transacted at Mumbai as well. This was rejected by the Commissioner on the ground that as per the public notice issued under Regulation 12(2) the business transacted at each port will .....

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..... licable only to that station. Anyone seeking a renewal in the Custom House should naturally satisfy the norms laid down in the public notice issued by the Commissioner having jurisdiction over that Custom House. It cannot be argued that the work done at other places also should be clubbed with the one that is done at the Custom House where the renewal is sought. Each licence should stand on its own merit when the CHAs are permitted to work at different ports. We therefore respectfully disagree with the decision cited above. In the second case cited supra, the Delhi High Court held that the Commissioner should not reject the pleas of the CHA while seeking the renewal arbitrarily. We notice that in the present case, the Commissioner has gone into the plea that the CHA could not fulfil the norms set out in the public notice issued at Kandla because of cyclone and rejected the plea as the appellants did not transact any business during 1998-99 whereas the port was commissioned within a fortnight of the cyclone hitting it. This is not a case where the Commissioner arbitrarily dismissed the pleas of the appellants. The ratio of this case does not, therefore, apply to the facts a .....

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..... the CHALR, 1984 reads thus :- Regulation 10. Grant of regular licence. The Commissioner shall, on receipt of an application in Form C [See Form No. 49 in Part 5], grant a regular licence in Form D [See Form 50 in Part 5] on payment of a fee of Rs. 5000/-] to such holder of a temporary licence who qualifies in an examination referred to in Regulation 9 and whose performance is found to be satisfactory with reference, inter alia, to the following :- (a) quantity or value of cargo cleared by such licensee conforming to norms as may be prescribed by the Commissioner; (b) absence of instances of delay either in the clearance of goods or in the payment of duty for any reason attributable to such licensee and any complaints of misconduct including non-compliance of any of the obligations specified in Regulation 14. (2) The Custom House Agents who are granted regular licences under Regulation 10, shall be eligible to work in all Customs Stations subject to fulfilment of the following requirements : (a) the licensee shall make an application to the Commissioner of the concerned Customs Station where he intends to transact business for purposes of registering himself and his .....

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..... pportunity for making a representation and being heard in his defence, if he so desires . (6) No order shall be made under sub-regulation (5) or sub-regulation (2) of regulation 8 in relation to an order passed by Commissioner under sub-regulation (3) or sub-regulation (1) of regulation 8, as the case may be, after the expiry of one year from the date on which such order was passed by the Commissioner. 9. It is evident from Regulation 10 that a licence issued under Regulation 10(1) stands on a different footing. A regular licence is given under Regulation 10(1) in Form D to a holder of a temporary licence who qualifies in an examination referred to in Regulation 9 and whose performance is found to be satisfactory with reference inter alia to quantity or value of cargo cleared by such licensee conforming to norms as may be prescribed by the Commissioner. The norms are prescribed in a public notice issued by the Commissioner. Grant of regular licence is therefore subject to three conditions as stated above, i.e. the applicant should have a temporary licence; should qualify in examination and that he should satisfy the norms prescribed in the public notice. The licence issued und .....

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