Custom House Agent liability fails where record does not prove authorised involvement in customs clearance or licence transfer.

A Custom House Agent cannot be penalised or subjected to forfeiture under the CHA Licensing Regulations unless the record affirmatively shows that it, or an authorised employee acting for it, actually transacted the customs business or unlawfully transferred its licence. Here, the evidence did not establish that the appellant filed the shipping bills, handled the cargo, or authorised any person to act in its name; the consignments were presented by an unauthorised third party. The statements relied on did not satisfactorily connect the appellant with the clearance of the goods, so the alleged contraventions were not proved and the punishment was unsustainable.

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Issues: Whether the Custom House Agent was guilty of contravention of the CHA Licensing Regulations for the impugned export consignments and whether the penalty and forfeiture order could be sustained.

Analysis: The finding of contravention rested on the assumption that the appellant had filed the shipping bills, handled the cargo, or allowed unauthorized persons to transact business in its name. The evidence, however, showed that the shipping bills were filed and the cargo was presented by Shri Kailash Chand Joshi, who had no authorization from the appellant and was not its employee. The record also did not establish that the appellant personally or through any approved employee transacted the business, nor did it show any transfer of licence. The statements relied upon by the Commissioner did not satisfactorily connect the appellant with the clearance of the goods, and the evidence of Shri Surender Kumar Chaddha was treated as of little significance.

Conclusion: The alleged contraventions were not proved against the appellant, and the punishment, including forfeiture, was unsustainable.

Final Conclusion: The appeal was allowed and the impugned order was set aside because the evidence did not establish the appellant CHA's involvement in the clearance of the overvalued consignments in the manner required by the licensing regulations.

Ratio Decidendi: Penalty or forfeiture against a Custom House Agent cannot be sustained unless the record affirmatively proves that the agent, or an authorised employee acting for it, actually transacted the customs business or unlawfully transferred its licence.

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