9911796707
TMI Blog2008 (9) TMI 326X X X X Extracts X X X X X X X X Extracts X X X X ..... e CHA is against an order of the Commissioner of Customs, Chennai suspending the operation of the licence issued under Regulation 9(1) of CHALR, 2004. Both the impugned suspensions are under Regulation 20(2) of CHALR, 2004. The miscellaneous applications filed by the appellants are for out-of-turn disposal of the appeals. After hearing both sides, we find that both the appeals require to be summarily disposed of. Accordingly, after allowing the miscellaneous applications, we take up the appeals. 2. The Commissioner of Customs, Chennai had issued a licence to the appellants authorising them to function as a Customs House Agent (CHA) at Chennai. This fact was intimated by the CHA to the Commissioner of Customs, Tuticorin and permission was s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the latter issued order dated 23-5-2008, the operative part of which reads as under:- "Accordingly, in exercise of the powers conferred under the provisions of Regulation 20(2) of Customs House Agent's Licensing Regulations, 2004. I D.P. Singh, Commissioner of Customs, Tuticorin, order for the suspension of the operation of the permission given under form 'C' as per Regulation 9(2) of the CHALR, 2004 (based on the main licence No. R-321 /CHA issued at Customs House, Chennai) to M/s. Oceanic Enterprises (India) Ltd., Tuticorin for violations of provisions of CHALR, 2004, with immediate effect and until further orders. 2. M/s. Oceanic Enterprises (India) Ltd., Tuticorin is granted a post decisional hearing at 12.30 hrs on 28-5-2008 to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der challenge in Appeal No. C/340/2008 filed by the CHA. This order states that "necessary inquiry proceedings under Section 22 of the CHALR, 2004 is contemplated and will be conducted in due course. The information received from the DRI, Chennai warrants action against the CHA.......under Regulation 22 of CHALR, 2004 which will be followed in due course." The operative part of this order states inter alia thus: "Further proceedings as contained in terms of Regulation 22 of CHALR, 2004 will duly be followed." 4. The learned Consultant submits that the operation of the licence has been suspended by the Commissioner of Customs, Chennai on the basis of an event which pccurred at Tuticorin. It is submitted that the findings recorded by the Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of a CHA licence by the jurisdictional Commissioner of Customs subject to the provisions of Regulation 22. Sub-regulation (2) of Regulation 20 enables the Commissioner, in appropriate cases where immediate action is necessary, to suspend the licence where an enquiry against the CHA is pending or contemplated. The enquiry referred to in sub-regulation (2) of Regulation 20 must be in accordance with the procedure laid down under Regulation 22, under which the process shall start with the issue of a show-cause notice to the CHA. 6. The question to be considered on the facts of this case is whether the Commissioner of Customs, Chennai had reason to find the case of appellants to be appropriate for immediate action. We find that, on the fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Regulation 20, the Commissioner can rely on the oral evidence gathered by the investigating agency against the CHA under Section 108 of the Customs Act. Our considered answer to this question is in the affirmative. Sub-regulation (2) of Regulation 20 is a specific provision for immediate suspension of a CHA licence in appropriate case. A Commissioner of Customs cannot pass a regular order of suspension under this provision upon completion of the enquiry envisaged under Regulation 22. Such an order will be passed under sub-regulation (7) of Regulation 22. Where the Commissioner is required to suspend the operation of CHA licence immediately pending enquiry, he will do so under sub-regulation (2) of Regulation 20, for which he must find the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order, failing which his order of suspension of operation of the licence shall stand set aside. 8. We have rot agreed with the learned Consultant's submission that no post-decisional hearing is envisaged under CHALR, 2004. The decision of the Larger Bench in Freightwings and Travels case (supra) is directly on the point. Para 5.4 of the judgment of the Larger Bench reads as follows:- "5.4 According to the parameters of the rule of natural justice as set by the Hon'ble Supreme Court, a person against whom punitive or damaging action is taken by any authority in its quasi judicial capacity must atleast be given the minimal fairness of a post-decisional hearing. In the present case, admittedly, the Commissioner has not given even such a hea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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