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2014 (6) TMI 614 - CESTAT BANGALORERenewal of CHA License - Employee of appellant prosecuted for export of red sander - Work came to standstill - Held that:- CHA knowingly involved himself in smuggling of red sanders and acted in a dishonest and fraudulent manner. The allegations are grave and serious. However, it is the contention of the CHA that neither the show cause notice nor the criminal case has been yet decided against them and unless the charges are proved in the first court of law, the pendency of the charge-sheet cannot be held against them. While considering the application for renewal of the licence, Commissioner of Customs has to take into consideration the performance of the licensee with reference, inter alia, to the obligations specified including the absence of instances of any complaints of misconduct. The present dispute revolves around the interpretation of the phrase absence of instances of any complaints of misconduct . It is the contention of the CHA that merely a complaint of misconduct cannot come in the way of renewal unless that complaint has been proved against them. In other words, the CHA is suggesting that the phrase ‘instances of any complaints of misconduct’ has to be read as ‘instances of any complaints of proven misconduct’. Charge sheet reproduced does not lead to the conclusion that there is conclusive evidence of knowledge of red sanders in the container leave alone connivance. There is definitely need for more detailed examination of all the evidences and documents and records. If the show-cause notice issued for revocation of licence was adjudicated and licence revoked, the renewal allowed would not have any effect on the proceedings against the licensee in any way whatever be the outcome. If the revocation is not ordered, the appellant-CHA can continue without any further problems since the only ground for rejection of renewal is the show-cause notice. In the present case if we allow the appeal on a permanent basis, the department cannot issue a show-cause notice for revocation of licence in view of the fact that no show-cause notice has been issued for revocation of licence and the regulations require that if there is a complaint of a misconduct licence should not be renewed. Appellants claim is that the complaints of misconduct are not proven one. If they are proved against the appellants, the appellants claim itself would render the appellant liable for non renewal of licence - License renwed temporarily - Decided conditionally in favour of appellants.
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