TMI Blog2016 (4) TMI 925X X X X Extracts X X X X X X X X Extracts X X X X ..... the connection with the importer who were found to have violated the provisions of Customs Act. It is also noted that CHA license is issued at Nagpur. There is nothing on record to inform whether any action has been initiated till date against the appellant by the original licensing authority at Nagpur customs. The impugned order is passed without following the principle of natural justice and without due process of inquiry. The order was issued after almost 7 years of purported misdemeanor. Thus the prohibition order fails due to lack of due process, inordinate delay and on prima facie merit. Therefore, order of prohibition is not legally sustainable and accordingly set aside. - Decided in favour of appellant - Customs Appeal No. 502 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the facts of the case are that the appellants are in the business of Customs House Agent (Customs broker) licensed by Nagpur Custom House. They have a Delhi office to attend to work of Customs clearance in Delhi. The Delhi operations are managed and controlled by one Shri G S Prince, G Card holder and employee of the applicant. The Directorate of Revenue Intelligence conducted certain investigation in 2011 relating to import of various high value cars. In one such case the investigation concluded in the issue of show cause notice dated 3.6.13 to various persons including the importers of one car - Toyota Land Cruiser and the applicant as CHA for clearance of the said car. The show cause notice dated 3.6.13 issued under the provision of Cus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to explain their side of the case. 5. The learned AR submitted that the appellant cannot escape liability for the acts of his G card holder at Delhi office. He supported the impugned order of prohibition. 6. The admitted facts of the case are that the present action of the Commissioner invoking the powers under Regulation 23 of the CBLR 2013 is the consequence of recommendation recorded in the order dated 18.01.2016 issued by the Principal Commissioner ACC (Import), New Delhi. On conclusion of proceeding under the provision of Customs Act, while he held that no penalty is imposable on the appellant for his role as a customs broker, he recommended action against him for violation of CHALR 2004. The present impugned order records fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion was concerned. Section 112(a) and 114 AA of the Act are penal in nature. Therefore, in the absence of some tangible material to show that the illegal import was with the knowledge of Respondent No. 1, no penalty can be imposed on Respondent No.1. 18. Mr. Kantawala then referred to the findings recorded in the order in original dated 18th July, 2013. The Court finds that in the said order as far as Respondent No. 1 is concerned, one reason for justifying the penalty is that Respondent No. 1 had failed to verify the antecedents of the importer diligently so as to inform the Department in case of any adverse observation. The other reason is that it had failed to supervise its employees so as to thwart the illegal import of the impug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Customs Act. It is also noted that CHA license is issued at Nagpur. There is nothing on record to inform whether any action has been initiated till date against the appellant by the original licensing authority at Nagpur customs. 8. Considering the above analysis and factual position, we find that the impugned order is passed without following the principle of natural justice and without due process of inquiry. The order was issued after almost 7 years of purported misdemeanor. Thus the prohibition order fails due to lack of due process, inordinate delay and on prima facie merit. We find the present order of prohibition is not legally sustainable and accordingly set aside the same. 9. The appeal is allowed and stay petition also stand ..... X X X X Extracts X X X X X X X X Extracts X X X X
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