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2015 (8) TMI 143 - HC - CustomsRevocation of CHA license - Submission of forged certificate - Held that:- The license issued to the appellant is under the provisions of the Regulations 2004. Clause 19 of the Regulations regulates 'Employment of Persons'. As per Clause 19(8), it is the responsibility of the Customs House Agent to exercise such supervision as is necessary to ensure the proper conduct of his employees in the transaction of his business as agent. This provision further provides that the agent shall be held responsible for all acts or omissions of his employees in regard to their employment. The consequence of breach of Clause 19(8) is provided in Regulation 20, which provides that the Commissioner may revoke the licence of a Customs House Agent and order forfeiture of part or whole of the security, or only order forfeiture of part or whole of security. - It was while working in that capacity that he has forged the signature of the proprietor of the appellant on the Bill of Entry, in the applications for issue of 'H' card and 'G' card and various other documents submitted to the Customs Department. He was enabled to do all the forgeries and derive the benefit thereof only because of his employment under the appellant and obviously on account of the failure of the appellant in effectively supervising the activities of his employees to ensure that they conduct themselves properly in the transaction of his business as a Customs House Agent. Therefore, the appellant cannot be absolved of his lapse of supervision attracting Clause 19 of the Regulations warranting action against him under Regulation 20. Even though the appellant functioned as a Customs Office of Agent on the basis of the license that was issued under the Regulations and was liable to be proceeded against under Clauses 19 and 20 of the Regulations penalty to be levied on the appellant should certainly be proportionate to the gravity of the breach proved to have been committed by him. While examining this issue, the fact that the appellant did not have any role in what was done by Sri.Vipin Kumar and his team and that the lapse found is supervisory lapse assumes importance the absence of any previous misconduct on the part of the appellant has also to be considered. - termination of the license ordered in Annexure A8 order and confirmed in Annexure A9 order of the Tribunal is too harsh and disproportionate. This view that we take, is supported by the principles laid down in the judgment in Ashiana Cargo Services v. Commissioner of Customs (I & G) 2014 (302) ELT 161 (Del) - Revocation of license is set aside - Decided in favour of appellant.
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