Revocation of Customs Agent License Suspension Over Time Limit Breach

The Tribunal revoked the suspension of the Customs House Agent (CHA) license due to delays in completing proceedings under Regulation 22 of CHALR, 2004, exceeding the stipulated 9-month period. Despite the seriousness of the offense and ongoing investigations, the Tribunal relied on a precedent and a Board circular mandating timely completion of proceedings, leading to the revocation of the suspension. The Tribunal granted relief to the appellant by setting aside the suspension order but allowed further action under Regulation 22.

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Issues:
Suspension of CHA license based on gross undervaluation with connivance, additional ground application, delay in completion of proceedings under Regulation 22 of CHALR, 2004.

Analysis:
The appellant, a Customs House Agent (CHA), appealed against the suspension of their license due to involvement in gross undervaluation activities with importers. The Directorate of Revenue Intelligence (DRI) conducted searches at the CHA's office premises and recovered incriminating documents, including tampered import invoices. The CHA admitted to tampering with invoices to facilitate customs duty evasion by importers. The CHA license was suspended on 5.9.2011 under Regulation 20(2) of CHALR, 2004. A personal hearing was granted, but no further action was taken under Regulation 22 of CHALR, 2004. The appellant sought revocation of the suspension order dated 29.9.2011.

The appellant argued that proceedings under Regulation 22 should have been completed within 9 months of receiving the offence report, citing a Tribunal decision in the case of Vinod Tomar. However, over 2 years had passed without completion of Regulation 22 proceedings. The appellant requested setting aside the impugned order based on this delay.

The learned A.R. contended that due to the seriousness of the alleged offence and ongoing DRI investigation, the suspension should continue until the investigation concludes. After hearing both parties, the Tribunal considered the submissions and referred to a Board circular requiring completion of proceedings against CHAs within 9 months of receiving the offence report. Since more than 2 years had elapsed without completion, the Tribunal, following the Vinod Tomar case precedent, revoked the suspension of the CHA license.

The Tribunal granted relief to the appellants by revoking the suspension order but allowed the Revenue to proceed against the appellant under Regulation 22 of CHALR, 2004. The appeal was disposed of accordingly, along with the miscellaneous application.

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