2005 (10) TMI 444 - AT - Customs

Delegation of Powers: Importance of Proper Authorization for Customs House Agents

The Tribunal upheld the decision of the Commissioner (Appeals) and dismissed the appeal due to lack of proper authorization for the Customs House Agent ... Appeals to Commissioner (Appeals) - Authorized person Issues:Delegation of powers to sign appeal by Customs House Agent without specific authorization.Analysis:The appeal before the Appellate Tribunal was dismissed by the Commissioner (Appeals) on the grounds that it was signed by the Customs House Agent (CHA) without specific authorization from the Board of Directors. The appellant argued that powers had been delegated to the CHA by the Deputy General Manager (Commercial) through a company Office Order dated 24-2-1995. The appellant contended that the CHA had the authority to sign the appeal based on the delegation of powers down the hierarchy within the company.The Revenue, represented by the S.D.R., argued that the principle of law dictates that delegated powers cannot be further delegated. The Revenue contended that there was no evidence provided to show the delegation of powers from the Deputy General Manager (Commercial) to the Manager and subsequently to the CHA. The Revenue maintained that since the CHA lacked the competence to sign the appeal on behalf of the appellant, the appeal could not be entertained by the Tribunal, supporting the decision of the Commissioner (Appeals).After hearing both sides, the Tribunal found that while the CMD had indeed delegated powers to the Deputy General Manager (Commercial), there was no evidence of further delegation of powers. The Tribunal emphasized the legal principle that once powers are delegated, they cannot be further delegated. Consequently, the Tribunal upheld the decision of the Commissioner (Appeals) and dismissed the appeal solely on the basis of the lack of proper authorization for the CHA to sign the appeal. The stay petition was also disposed of accordingly.