2008 (6) TMI 612 - AT - Customs

Customs House Agent license suspension upheld for mis-declaration despite dropped forgery charge

Jasjeet Singh Marwaha Versus CC

The Tribunal upheld the suspension of the Customs House Agent (CHA) license under Regulation 20(2) following findings of forgery and mis-declaration. ... Suspension of CHA licence - charge of forgery dropped, which was the base of suspension of licence - penalty - Held that: - there was specific finding regarding forgery and mis-declaration of goods by the adjudicating authority against the appellant and the impugned order was passed immediately after passing the adjudication order. The appellant filed appeal and the Commissioner (Appeals) reduced the penalty and the appellant's appeal against the Commissioner (Appeals) order is still pending with the Tribunal. Therefore, the allegation against appellant regarding mis-declaration of goods is still there - appeal dismissed - decided against appellant. Issues:1. Suspension of CHA license under Regulation 20(2) of Customs House Agents Licensing Regulations, 2004.2. Delay in suspension order after import in 2002.3. Allegation of forgery and mis-declaration leading to suspension.4. Appellant's argument on the sustainability of suspension order.5. Commissioner's decision based on investigation results and subsequent actions.6. Comparison with previous court decisions on immediate suspension.7. Pending appeal and revocation notice under Regulation 20(1).Analysis:1. The appellant challenged the suspension of their CHA license under Regulation 20(2) of Customs House Agents Licensing Regulations, 2004, following an order by the Commissioner of Customs. The Tribunal directed a post-decisional hearing for the appellant to explain their position and for the Commissioner to decide on the suspension.2. The appellant raised concerns about the delay in the suspension order, issued almost five years after the import in 2002. They argued that immediate suspension is required in cases of misconduct, citing decisions by the Hon'ble Bombay High Court emphasizing the need for prompt action in such matters.3. The suspension order was based on an adjudication finding of forgery and mis-declaration of goods, leading to a penalty under Section 112(b) of the Customs Act. However, the Commissioner (Appeals) later dropped the forgery charge, prompting the appellant to claim that the basis of the suspension was no longer valid.4. The appellant contended that since the charge of forgery was set aside, the suspension order was unsustainable. On the other hand, the Revenue argued that the charges against the appellant were serious, supported by an investigation revealing mis-declaration of goods to evade Customs duty.5. The Revenue highlighted that the penalty was reduced on appeal but the core allegation of mis-declaration remained. They referenced a pending appeal before the Tribunal and a show-cause notice for license revocation issued earlier, indicating that the matter was still unresolved.6. The Tribunal differentiated the present case from previous decisions, noting the immediate suspension following the adjudication order. They emphasized the seriousness of the charges and the ongoing appeal process as reasons for upholding the suspension.7. Ultimately, the Tribunal dismissed the appeal, considering the specific findings of forgery and mis-declaration against the appellant, the reduction of penalty by the Commissioner (Appeals), and the pending appeal challenging the mis-declaration charges. The Tribunal found no grounds to interfere with the suspension order based on the circumstances presented.