TMI Blog2008 (9) TMI 628X X X X Extracts X X X X X X X X Extracts X X X X ..... d against the CHA under Regulation 20(2) of the CHALR, 2004 and an immediate action was considered necessary as the activities of the CHA were considered prejudicial to the interests of the Revenue, requiring immediate action to prevent further misuse of CHA licence. 2. The brief facts of the case are that, during the course of certain investigations, it came to notice that one M/s. Chankaya Impex were importing goods under the advanced licence which were meant for further manufacturing in its own premises or the premises of supporting manufacturer but instead of the goods being sent for manufacturing, the same were diverted in the local market for sale without any manufacturing activity being undertaken at the place of declared supportin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icated by the Commissioner vide his order-in-original dated 14-12-2007, wherein he imposed a penalty of Rs. 20 lakhs each on the CHA and its director. It was after receipt of the above order of adjudication in July, 2008 by the Commissioner of Customs (General) that the suspension order was issued on 24-7-2008, even though the case pertains to the year 2005. 4. We have heard both sides in the matter. 5. While the ld. DR refers to the facts brought out in the order-in-original, and the statements of the director of the CHA and others bringing out. his involvement in the fraudulent diversion of imported material in the local market, with active assistance from the CHA and its director, the ld. advocate for the appellants submits that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the year 2005 as the import had taken place in Sep. 2005 and order of suspension was issued on 30-10-2006 itself indicate that there is no emergency which required licence to be suspended. Similarly in the case of Commissioner of Customs v. Burieigh International, 2008 (226) E.L.T. 49 (Bom.) it was observed that order of suspension passed seven months after the alleged misuse came to notice of department - considering passage of time between detection of alleged misuse and order of suspension, Tribunal s order setting aside order of suspension cannot be faulted with. It was submitted that in their case the event has taken place in the year 2005 while the licence has been suspended in the year 2008 and therefore it cannot be said that there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on order in which the involvement of the CHA and its director has been upheld and penalties of Rs. 20 lakh have been imposed both on the CHA and its director. On appeal before the CESTAT, when the stay application came for hearing, the CESTAT after looking into the entire facts observed prima facie this is sufficient to put the traders, the CHA and its directors to terms and directed pre-deposit of Rs. 5 lakhs by the CHA, M/s. Ami Clearing and Forwarding Pvt. Ltd. and Rs. 2 lakhs by Shri Lalit Mange, Director. Normally in stay petitions, pre-deposit of penalties are not insisted upon, but in the present case pre-deposit of Rs. 5 lakhs has been asked from CHA and Rs. 2 lakhs from its director and thus prima facie Tribunal felt that there i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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