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TMI Blog2017 (5) TMI 798X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, 1962, the power to review orders of Commissioners of Customs in the capacity of adjudicating authority. The review committee opposes the revocation of suspension of the 'customs house agent' licence of M/s Mukadam Freight Systems Pvt Ltd by Commissioner of Customs (General) in the impugned order. 2. The license of M/s Mukadam Freight Systems Pvt Ltd (CHA no. 11/246) was placed under suspension by order no.26/2001 dated 26th June 2001 which, upon directions of the Tribunal on appeal of the licencee for disposal thereof, was confirmed vide order no.1/2002 dated 29th December 2001. In the meanwhile, inquiry in accordance with regulation 23 of Custom House Agents Licensing Regulations (CHALR), 1994 was ordered on 6th December 2001. The inq ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edings are yet to be concluded in accordance with the Regulations, the proper course of action would have been to await the culmination of proceedings under regulation 23. No direction is required for a statutory authority to fulfil its obligations to bring to a closure that which has been commenced. 5. Nevertheless, a crucial issue that must necessarily be determined is the propriety and legality of review of an order passed in exercise of powers under section 129D of Customs Act, 1962. For it is the exercise of that power that the proceedings leading to the present appeal before us has come about. Such a determination is warranted because such appeals emanate from dropping of proceedings and its remedial efficacy, considering the elapse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with economical operations. World over, customs agents or brokers have existed to satisfy this want. Custom House Agents (CHA) are licensed under, function in accordance with, and are governed by, the Custom House Agents Regulations, 1984 (or such other Regulations framed and notified by Central Board of Excise & Customs from time to time). These Regulations are framed under section 146 of Customs Act, 1962 which has been incorporated for the specific purpose of providing legal authority and, in the interest of Revenue and the trade, for regulating the operation of such agents within the framework of Customs Act, 1962. They are, therefore, in the nature of an auxiliary of the tax collection structure established under the Customs Act, 1962 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e period within which such appeals shall be filed.' makes this abundantly clear. The penal provision in the Regulations admits of three detriments and no other. The appeal provision is specific in stipulating that 'Regulation 23. Procedure for suspending or revoking licence under Regulation xxxxxx (8) Any Custom House Agent aggrieved by any decision or order passed under regulation 21 or sub-regulation (7) of regulation 23, may appeal under section 129A of the Customs Act, 1962, to the Customs and Central Excise Gold (Control) Appellate Tribunal established under section 129(1) of Customs Act, 1962.' 8. The Regulations vest the authority to bring into being, and erase out of existence, a custom house agent in Commissioner of Customs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mental to the licensee, its employees and their dependents. Hence, akin to conditions of service of officers of Customs, the licensing regulations stipulate a procedure for revocation that is closely parallel to the disciplinary proceedings preceding any detriment to conditions of service. The relationship between a licensed custom house agent and the licencing authority is not much different from that of 'master-servant.' 10. It is axiomatic that in all such proceedings, culminating in termination of such a relationship or is, in any other way, detrimental to the servant, the principles of natural justice require that the power to penalise vests with the author of its being, viz., the appointing authority, that there be a code of conduct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n tax matters is not, therefore, intended to be vested in an administrative authority because collection of the legislated tax is for the benefit of the citizens of the country and in accordance with the power to tax having been invested by the citizenry on the sovereign legislature. The adjudication and appellate orders are, for that reason, subject to scrutiny of the review authority established in the taxing statute itself as enacted by the sovereign legislature. There is no such provision for review in the Customs House Agents Licencing Regulations, 1984. 13. The consequential question that begs an answer is the scope of taking recourse to the general provision in chapter XV of Customs Act, 1962 on the assumption that regulation 23 of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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