2013 (6) TMI 272

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....nd that its continuance was considered prejudicial to the interest of the Revenue warranting immediate action. The allegation relates to the export of cheap material such as soap stone powder in the names of exporting firms by misdeclaring it as high value bulk drugs and their intermediates. A person by the name of Manoj Gore is alleged to have attended to the clearance of the export consignments on the strength of a CHA licence of the Petitioner. It is alleged that an employee of the Petitioner allowed the said Manoj Gore to attend to the clearance of export consignments on behalf of the CHA firm. 2. Regulation 21 empowers the Commissioner of Customs to prohibit any Customs House Agent from working in one or more sections of the Customs....

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....s required, after which an opportunity has to be given to the agent whose licence is suspended within fifteen days from the date of the suspension. In our view, Regulation 21 has to be so interpreted so as to balance the requirement of fairness to the Customs House Agent on the one hand, which would warrant compliance with the principles of natural justice together with the need, on the other hand to protect the public interest essentially where immediate action is warranted. Hence, where immediate action is warranted, to prevent a customs house agent from carrying out activities which are prejudicial, a prohibitory order can be passed under Regulation 21 for a limited period. During that period an opportunity of a hearing can be afforded i....

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....ffering the person to present his case and after passing a reasoned order. If the Committee recommend these provisions could be made more explicit in the Regulation itself.    Committee's observations (25/10/2004)    The Committee noted that the Ministry were agreeable to make the provisions of the regulation more explicit in order to allay any apprehension of arbitrary action.    Committee's Observations (9/11/2005)    The Committee noted the position as explained by the representatives of Bangalore Commissionerate." Regulation 21 has not been amended thereafter. The report inter alia contains a reference to the fact that the Committee was satisfied with the explanation furnished by th....