2002 (7) TMI 652 - AT - Customs

Summary

Issues:
Appeal against suspension of CHA license under Regulation 21(2) of CHALR, 1984.

Analysis:
The appeal was filed by a Customs House Agent (CHA) challenging the suspension of his CHA license under Regulation 21(2) of the Customs House Agents Licensing Regulations, 1984. The suspension was based on allegations of misdeclaration in an export cargo shipping bill filed by the CHA, with an intent to evade Customs Duty. The investigation indicated that the Power of Attorney Holder of the CHA firm had contravened the provisions of the regulations. The Commissioner, in an exceptional case where immediate action was deemed necessary, suspended the CHA license. However, the appeal contended that the order of suspension lacked clarity on the events and allegations establishing the CHA's culpability, and no proceedings under the Customs Act, 1962 had been initiated based on the alleged misdeclaration.

The Tribunal heard arguments from the appellant's representative and the Revenue's representative. It was noted that the regulations did not explicitly address the CHA's ability to grant a power of attorney to any person, raising doubts about the identity and role of the Power of Attorney Holder in question. The practice of CHAs granting power of attorney to non-employees was highlighted as a common but potentially problematic practice. The proceedings lacked clarity regarding the specific misdeclaration made in the export cargo, as required by Regulation 23 for suspending or revoking a CHA license.

The Tribunal emphasized that for immediate suspension of a CHA license under Regulation 21(2), the order must outline the events and allegations demonstrating the CHA's culpability. In this case, the order of suspension was deemed premature and not sufficiently detailed to justify the suspension. As a result, the Tribunal allowed the appeal and set aside the suspension order. However, it was clarified that this decision did not prevent further action by Customs authorities once the inquiry into the alleged misdeclaration reached a stage warranting action under the regulations.