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2022 (3) TMI 59

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..... late Tribunal (hereinafter referred to as 'CESTAT'). His appeal was also dismissed. We frame the following substantial question of law for our consideration. "Whether the CESTAT was right in law in upholding the order passed by the Commissioner of Customs rejecting the application of the appellant for renewal of the license." Brief facts are as under. The appellant was granted license as a CHA after following due procedure. It appears that a show cause notice was issued to him on 16.03.2015 pointing out that in relation to certain clearances during the year 2014, there were certain irregularities. It was alleged that in the process the appellant as CHA failed to advise his client to comply with the provisions of the Customs Act and fai .....

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..... ised objections to the proposal of not renewing the license. His main ground was that for the alleged irregularity he has already been adequately punished when the Commissioner imposed the penalty of Rs. 25,000/-, his license was also suspended for a period of about 7 months. Only on this ground his application for renewal of the license cannot be rejected. Ignoring such objections of the appellant, the Commissioner of Customs passed an order dated 11.06.2018 and refused to renew the license. Referring to Regulation 9(2) of the said Regulations of 2013 he gave following reasons for passing the impugned order. "I do not find merit in the noticee's contention that since the earlier case was adequately adjudged by the then adjudication autho .....

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..... ri Bijay Kumar, Member (Technical), wherein it has been held that the fact that the Adjudicating Authority below has set aside the suspension of the license while finally adjudicating a Show Cause Notice alleging violation of obligations on part of CHA, the same cannot be a ground for being considered at the time when the said CHA applies for renewal of the said licence. The said order has been brought to the notice by learned Member (Technical) being the common Member for both the orders. In the given circumstances, this amounts to apparent contradiction in findings of two coordinate Benches and the situation may warrant the issue to be referred to Hon'ble Larger Bench. However, prior the registry is directed to place on record copy of the .....

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..... onary powers decided not to renew the license on account of conduct of the appellant. The orders passed by the tribunal are therefore valid. The facts of the case are rather simple though somewhat unusual. The respondents have not disputed that the sole instance of aberration in the working of the appellant as CHA led to the Commissioner passing an order of imposition of penalty of Rs. 25,000/- under Regulation 22 of Regulations of 2013. He found that the irregularity did not warrant revocation of the license itself. Upon this order being passed, the suspension of the license of the appellant stood revoked. He worked as a CHA without any further complaint for a period of three years when he had applied for renewal of the license. It is al .....

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..... be renewed from time to time in accordance with the procedure specified in sub-regulation (2). Sub-regulation (2) of Regulations of 2013 which is of importance reads as under:- "The Commissioner of Customs may, on an application made by the licensee before the expiry of the validity of the licence under sub-regulation (1), renew the licence for a further period of ten years from the date of expiration, if the performance of the licensee is found to be satisfactory with reference, inter alia, to the obligations specified in this regulation including the absence of instances of any complaints of misconduct." Under this sub-regulation thus renewal of license can be granted if the performance of the licensee is found to be satisfactory with .....

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