TMI Blog2007 (5) TMI 425X X X X Extracts X X X X X X X X Extracts X X X X ..... and the stay and appeal are taken up for hearing. This appeal arises from an Interim Order of Suspension in Order No. 1/2007 dated 2-4-2007 suspending the Customs House Agents License in terms of provisions of Regulation 20(2) of CHA Licensing Regulations, 2004 by the Commissioner of Customs., Visakhapatnam. 2. The order states that appellant is a holder of CHA License under Regulation 9 of CHA Agents Licence Regulations, 2004 issued under Section 146 of Customs Act, 1962. They are also holders of Bonded Warehouse Licence No. 21/2002 valid till 8-5-2007 issued by the same Customs House for storing timber logs imported by various importers. The appellant as a CHA was also clearing and forwarding agent for the importers who stored the impo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant within his jurisdiction has passed the order of suspension in terms of Regulation 20(2) of CHALR, 2004. 2.3 This order of suspension is under challenge. 3. We have heard both sides in the matter in extenso and perused all the records including the judgment cited by both the sides. 4. At the outset, the learned Counsel s submission is that the Commissioner does not have powers to suspend the appellants for actions done under the Warehousing Licence. It is his further submission that the action was not taken immediately in terms of the said Rules and Regulations and therefore, the suspension order should be vacated and the Commissioner be directed to allow the appellant to resume their business as they are carrying on the business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f removal of timber logs from the bonded warehouse. It is his submission that the same CHA had filed the Bills of Entry and the clearance were still not completed as the goods had been bonded and he was required to have paid the duty also. The statements recorded are self implicatory and binding. The CHA s employees and the Joint Managing Director have confessed the act of removal of bonded timber logs without payment of duty. Therefore, there is an immediate cause for suspending the license in terms of Regulation 20(1)(c). It is also submitted that the action has been taken immediately in terms of 20(2) pending enquiry. 5.1 It is submitted by the learned JDR that the High Court of Madras in the case of Cargomar v. CCE, Coimbatore - 2006 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ices Ltd. v. Commissioner of Customs, Coimbatore - 2006 (196) E.L.T. 51 (Tri.-Chennai). 6. In counter the learned persuaded this Bench to revoke the order or in the alternative for direction to the Commissioner to give post-decisional hearing as held in the Larger Bench judgment rendered in the case of Freightwings and Travels Ltd. v. CC - 2001 (129) E.L.T. 226 (Tri.-L.B) wherein an order of suspension was upheld, however, a direction was given to the Commissioner to grant post-decisional hearing and decide the matter within four weeks from the receipt of the Tribunal s order. The learned Counsel submitted that still a shorter period of two weeks to be fixed, as the appellant is suffering due to stoppage of business. He however continued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmitting the mis-conduct, the Commissioner has placed the license of CHA under suspension in terms of Regulation 20(2) of CHALR, 2004. All the three High Courts in the cited judgments relied by the learned JDR upheld the power of Commissioner to place the CHA under suspension where circumstances warrant for the same. In this case, the suspension order clearly refers to the confessable statements of the employees of CHA and Joint Managing Director of CHA in removing the timber log worth Rs. 1.5 crore without payment of duty from bonded warehouse. The appellant s have been granted licence for bonded warehouse and he was expected to discharge his responsibilities in a diligent way. The learned Counsel submitted that the CHA s action did not a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5.4 of the order has held that in accordance with the parameters of the rule of natural justice as set by the Hon ble Supreme Court, a person against whom punitive or damaging action is taken by any authority in its quasi-judicial capacity must at least be given the minimal fairness by a post-decisional hearing. Therefore, the Larger Bench in the said Para directed the Commissioner to grant hearing within four weeks from the receipt of the order of the Tribunal. Following this ratio, we direct the Commissioner to grant post-decisional hearing to the appellant within four weeks from the receipt of this order. The appellants are entitled to raise all grounds as deemed fit by them to plead that there was no mis-conduct on their part and the Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
