2017 (11) TMI 553 - AT - Customs

Appeal by Revenue Dismissed Due to Lack of Appellate Remedy and Delay

The Tribunal held that the appeal by Revenue was not maintainable due to the absence of an appellate remedy for Revenue in CHALR, 2004 and the significant ... Maintainability of appeal of Revenue - appealable order before Tribunal - Held that: - It is clear that CHALR, 2004 specifically provided an appellate remedy for the aggrieved CHA against the action by the Licensing Authority. No provision has been made for Revenue for appeal. In case no provision for appeal has been made in the CHALR, 2004 for both the parties it will follow that general principles of Customs Act shall automatically be applied - The Tribunal in various decisions, held that the Revenue cannot file appeal against the order of the Commissioner issued under CHALR, 2004. Forfeiture of security deposit - violation of provisions of CHALR 2004 - Held that: - the proceedings resulting in the impugned order were badly delayed by more than three years which also makes the order without jurisdiction. The time limit prescribed under CHALR, 2004 is to be strictly followed by the Licensing Authority. Appeal dismissed being not maintainable. Issues:1. Appeal against order of Commissioner of Customs regarding forfeiture of security deposit under Customs House Agent Licensing Regulation (CHALR), 2004.2. Maintainability of appeal by Revenue under Section 129A of the Customs Act, 1962.3. Delay in proceedings and jurisdictional validity of the impugned order.Analysis:Issue 1:The appeal was filed by Revenue against an order of the Commissioner of Customs regarding the forfeiture of a security deposit of Rs. 50,000 provided by a licensed custom house agent for violating the provisions of Customs House Agent Licensing Regulation (CHALR), 2004. The Original Authority did not order the revocation of the license, which was proposed in a show cause notice. The Revenue contended that the respondent's activities were in clear violation of CHALR, 2004, and the Original Authority failed to take appropriate action. The respondent argued that the appeal was not maintainable as CHALR, 2004 is a self-contained code without provisions for Revenue to appeal against non-revocation of a license. The Tribunal, citing precedents, found that the appeal by Revenue was not maintainable due to the absence of appellate remedy for Revenue in CHALR, 2004.Issue 2:The maintainability of the appeal by Revenue under Section 129A of the Customs Act, 1962 was contested. The Revenue argued that since the order was issued under CHALR, 2004 framed under the Customs Act, appeal should be available to them. However, the Tribunal held that since CHALR, 2004 provided an appellate remedy only for the aggrieved custom house agent (CHA), the general principles of the Customs Act did not automatically extend the appeal remedy to Revenue. Citing various decisions, the Tribunal concluded that the Revenue cannot file an appeal against the Commissioner's order under CHALR, 2004.Issue 3:The proceedings leading to the impugned order were significantly delayed by over three years, rendering the order without jurisdiction. The Tribunal emphasized the strict adherence to the time limits prescribed under CHALR, 2004 by the Licensing Authority. Referring to previous judgments, the Tribunal highlighted that the impugned order could not have been issued beyond the regulation's specified period. Consequently, the Tribunal found the appeal not maintainable and dismissed it.In conclusion, the Tribunal held that the appeal by Revenue was not maintainable due to the absence of an appellate remedy for Revenue in CHALR, 2004 and the significant delay in the proceedings, rendering the impugned order without jurisdiction.