2006 (11) TMI 281 - BOMBAY HIGH COURT

Custom House Agent- The respondent was holding the Custom House Agent licence bearing CHA licence No. 11/430 issued under these regulations. The same was suspended by the appellant by order in view of serious allegations of misconduct against the Firm for the act of its employee one Rehman Iqbal Shaikh authorised under Regulation 8 of these regulations (referred as Regulation 8 employee). The allegations were arising out of two incidents viz. (i) misdeclaration of the value of a Volkswagen Car and deliberately giving wrong name of country of export and also of the importer to avoid the correct duty. This was in April 2005 at Air Cargo Complex at Sahar and (ii) the other incident was in May 2005. That was concerning the outright smuggling of a Mercedes Benz Car at JNPT Nhava Sheva. Held that- employee had no authority to go into custom area except as regulation 8 employee of firm. Department entitled to interfere that CHA party to entire episode. Principles of vicarious liability of master applicable commissioner rightly revoked licence as responsible for happenings in custom area. Tribunal not expected to interfere on basis of own notions difficulties of CHA or employees. Tribunal not justified in setting aside revocation.