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2015 (10) TMI 2332 - MADRAS HIGH COURTSuspension of Custodianship – Unauthorised removal of seized Red Sander logs - Whether suspension was in violation of principles of natural justice and Commissioner was justified in invoking the provisions of Regulation 11(2) of Handling of Cargo in Customs Area Regulations 2009, when no enquiry against appellant was pending? – Appellant contends that there has been violation of tenets of natural justice as appellant was neither given any pre-decisional nor any post decisional hearing - After suspending custodianship neither SCN was issued under Regulation 12 of Handling of Cargo in Customs Area Regulations (HCCAR), 2009, nor any enquiry was initiated and thus Commissioner wrongly stated that an enquiry was pending or contemplated - Commissioner had not proved that removal of seized container was done with knowledge of appellant thus impugned order was absolutely erroneous. Revenue contended that offence committed in contravention to provisions of HCCAR, 2009 by appellant was not new and there was lack of supervision on part of appellant's CFS and no surprise checks were conducted during the night time to ensure that staffs on night duty would remain vigilant - Appellant admitted the role of his employees in illegal act of removal of seized container thus was responsible for every act by their employees - Where immediate action is not required, a prohibitory order can await compliance with requirements of natural justice. Held That:- Principles of natural justice have not been violated - Appellant being custodian of seized container had violated Regulations enshrined in 6(1)(a), 6(1)(f), 6(1)(i), 6(1)(k) and 6(1)(q) of HCCAR, 2009 – Action of Commissioner was fully justified in invoking provisions of Regulation 11(2) as it cannot be said that appellant was not aware of illegal removal of seized container - Employer is liable for acts of its employee in course of employment - Repeated instances of smuggling of goods in appellant’s CFS confirms serious lapses on part of custodian and cannot be overlooked – Commissioner directed to complete the investigation proceedings and pass orders as contemplated under Regulations of HCCAR, 2009 within a period of three months – Decided in favour of Revenue.
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