TMI Blog2015 (8) TMI 489X X X X Extracts X X X X X X X X Extracts X X X X ..... time of making declaration – Appeal hereby allowed – Decided in favour of Revenue. - C.S.T.A. No. 7/2014 - - - Dated:- 24-6-2015 - Vineet Saran And Aravind Kumar, JJ. For the Appellant : Sri G Rajagopalan, Addl. Solicitor General Sri N R Bhaskar, CGSC For the Respondent : Sri Shivadass G And Sri Harish R, Advs JUDGMENT The present appeal is with regard to the renewal of the Customs House Agent (now Customs Broker) Licence of the respondent. 2. Brief facts relevant for the purposes of this case are: Respondent was initially granted a Customs House Agent Licence under the provisions of the Customs House Agents Licensing Regulations, 2004 (for short Regulations of 2004') which was valid up to 08.04.2014. Regulations of 2004 were substituted by the Customs Brokers Licensing Regulations, 2013 (for short Regulations of 2013') and it was under the said Regulations that the respondent submitted an application on 14.02.2014 for renewal of its licence as a Customs Broker. In the said application, certain declarations had to be made in terms of Regulations 5 and 9(2) as well as the Public Notice No.2/2014 (CUS) which were duly provided by the responden ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovisions of Regulation 5(d) of the Customs Broker Licensing Regulations which debar any person, against whom a criminal prosecution is pending, from obtaining a licence? 4. We have heard Sri G Rajagopalan, learned Additional Solicitor General of India along with Sri N.R.Bhaskar, learned counsel appearing on behalf of appellant as well as Sri G.Shivadass, learned counsel appearing for the respondent and perused the record. 5. The Commissioner of Customs has denied renewal of licence primarily on the ground that there was a complaint of misconduct against the respondent and also because the respondent had suppressed material information required to be declared under Regulation 5(d) of the Regulations, 2013 read with Public Notice No.2/2014(CUS), which was to the effect that the applicant was to disclose about any criminal proceedings pending against it in any Court of law and despite a criminal case pending against the respondent - applicant under Sections 120B, 420, 468 471 of the Indian Penal Code, no such information was provided in the application or declaration or in other words, same had been suppressed. 6. The submission of Sri G Rajagopalan, learned Addl. Solicit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovisions of renewal of licence are contained in Regulation 9 of the Regulations, 2014. Said Regulations are reproduced below: 5. Conditions to be fulfilled by the applicants: - The applicant for a licence to act as Customs Broker in a Customs Station, shall prove to the satisfaction of the Commissioner of Customs, that:- (a) he is a citizen of India; (b) he is a person of sound mind; (c) he is not adjudicated as insolvent; (d) he has neither been convicted by a competent court for an offence nor any criminal proceeding is pending against him in any Court of law; and (e) xxx (f) xxx (g) xxx (h) xxx provided that for the purpose of his satisfaction, the Commissioner of Customs may make enquiries as may be deemed fit. 9. Period of validity of a licence.- (1) A licence granted under regulation 7 shall be valid for a period of ten years from the date of issue and shall be renewed from time to time in accordance with the procedure specified in sub-regulation(2): Provided that a licence granted to a Customs Broker, authorised under the Authorised Economic Operator Programme referred to in Board's Circular No.28/2012 - Customs dated 16.11.2012, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... application of the respondent dated 14.02.2014. At Sl.No.15 of the said application, the respondent had given the declaration as provided by clause (xvi) of para 2 of the Public Notice No.2/2014. The relevant portion of the declaration is reproduced below: We SDV International Logistics Limited, hereby declare that there are no changes in the constitution, there is no change in address, there was no time expired/inoperative cards in Forms G/H etc., there are no pending submissions to the department, we maintain accounts as per Regulation 16 of CBLR, 2013, there are no judicial/quasi judicial cases pending and there are no arrears payable to the department in Bangalore. 13. A perusal of the said declaration would explicitly make it clear that it was a categorical statement made by respondent that there was no judicial/quasi judicial cases pending against it. An attempt has been made to justify the said declaration as the criminal case against respondent was pending in Kolkata and it has been stated, declaration made was with regard to pendency of any criminal case in Bengaluru alone. Such explanation does not deserves to be accepted as the respondent has been in the busines ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e was rejected on the ground of charge sheet under Section 419/468/471 IPC having been lodged before Baranagar Police Station. It has been noticed by the High Court of Calcutta that there were disputes and differences between the writ petitioner and his brother - Mr.Debtosh Saha. On account of such disputes, brother of writ petitioner had filed a complaint before the jurisdictional police which had resulted in filing of the charge sheet. The dispute was relating to the partnership firm between the two brothers and undisputedly, the firm - M/s.Saha Shipping Agency was possessing the Customs House Agents Licence and said licence came to be cancelled on account of interse dispute between the partners (brothers), which was challenged before the High Court in the earlier round i.e., in W.P.No.16945/2010 which came to be disposed of on 25.01.2011 by observing as under: When one of the two partners of a partnership firm has sought suspension of the licence granted to the partnership, the licence cannot be allowed to operate. The licence would necessarily have to be cancelled. The partnership firm cannot continue with a licence under the Customs House Agents Licensing Regulations, when ..... X X X X Extracts X X X X X X X X Extracts X X X X
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