1988 (5) TMI 189 - HC - Customs

Validity of Customs House Agents license cancellation upheld; Qualification requirements justified

SAINATH SHIPPING CORPORATION Versus COLLECTOR OF CUSTOMS

The court upheld the validity of cancelling a temporary Customs House Agents license due to the proprietor's failure to meet qualification requirements ... Suspension or revocation of licence Issues:1. Validity of the order cancelling the temporary Customs House Agents licence.2. Allegation of discrimination in the licensing regulations.3. Legality of revocation without show cause notice.Analysis:1. The judgment addresses the challenge to the cancellation of a temporary Customs House Agents licence held by the Petitioner No. 1. The Assistant Collector of Customs cancelled the licence due to the Proprietor's failure to qualify in the examination within the stipulated period. The Petitioner argued that the regulations were discriminatory as they did not allow a subordinate or employee to qualify in the examination for a sole proprietorship, unlike in the case of a company or firm. The court held that the regulations differentiate based on the nature of the business entity, requiring the person actually engaged in the work of clearance of goods to qualify. Thus, the cancellation of the licence was deemed valid, considering the distinct roles in sole proprietorships and companies.2. The Petitioner also contended that the revocation of the licence without a show cause notice was illegal under Regulation No. 21. However, the court rejected this argument, emphasizing that the Petitioner only held a temporary licence and was still an aspirant for the licence, not a holder of the licence. As Regulation No. 21 pertains to the revocation of granted licences, it was deemed inapplicable in this case. Therefore, the court summarily dismissed the petition challenging the revocation of the temporary licence.This judgment clarifies the application of licensing regulations in the context of Customs House Agents and distinguishes between the requirements for sole proprietorships and companies. It underscores the necessity for the person directly involved in the clearance of goods to qualify for licensing purposes and upholds the validity of cancellation in cases of non-compliance. The court's interpretation of the regulations and the distinction between temporary and regular licences provides guidance on compliance and procedural aspects in such matters.