TaxTMI 
TaxTMI 
TaxTMI 
2014 (3) TMI 839
X X X X Extracts X X X X
X X X X Extracts X X X X
....toms, (Seaport-Import), Customs House, Chennai, and other records the undersigned is of a considered view that the CHA has contravened the provisions of the Regulation 13 of the erstwhile CHALR 2004. It is also found that the contraventions committed are grave and serious. Further, it would appear that a large number of consignments of similar nature are in pipeline. Therefore, if immediate action is not taken, the interest of revenue is likely to be seriously prejudiced. In view of the above, I, Sandeep Prakash, Commissioner of Customs, Bangalore, hereby prohibit the said CHA, M/s Flyjac Logistics Pvt. Ltd., in terms of powers conferred on me under the provisions of Regulation 23 of the CBLR, 2013, from operating within the jurisdiction of Bangalore Customs Commissionerate, with immediate effect and until further orders. This order is passed subsequent to the Order-in-Original No. 20864/2013 dated 7.5.2013, passed by the Commissioner of Customs (Seaport-Import), Chennai revoking suspension of CHA licence of the appellant. 3. The appellant is in appeal against the order of prohibition dated 11.7.2013. 4. For better appreciation of the facts, we consider that it would be necessa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....which were not available in the corresponding supplier's invoices, have been added to the 'item description'. Further, the officers of the DRI could lay hands on a copy of export declaration being No. 5770 dated 23.12.2010 filed by the supplier of the impugned goods with US Customs at the time of export of the said consignment which showed that the description of the goods as 'Oral Supplements' and the Tariff Heading as '2106.09.7090'. This document in fact was submitted by Mr. Mohammed Kaleem, Manager, Import Clearance of the said CHA, during course of deposing his voluntary statement dt. 24.9.2012. 5. However, contrary to the above, the goods were classified as medicaments under CTH 30045020 by willfully adding the expressions 'Mineral Substances' and 'for mfg purpose' to the description of the goods to justify its classification and to avoid payment of CVD on RSP basis. In this connection, statements were recorded from Sh. Mohammed Kaleem, Manager of the said CHA and Sh. Chinta Ravi kumar, Regional Head of M/s Health Code India Pvt. Ltd. 6. Sh. Mohammed Kaleem, in his voluntary statement dated 24.09.2012 interalia stated that he attended to the clearances of goods related to b....
X X X X Extracts X X X X
X X X X Extracts X X X X
....mitted that the prohibition order has been issued after the appellant had undergone suspension from 29.4.2013. He submitted that the order of prohibition affects the livelihood of employees of the CHA and in any case, the enquiry for revocation of licence is still in progress. He also submits that two Bills of Entry in question were filed in Bangalore in January 2011 and if we consider timeline, the suspension has to be revoked immediately and therefore, enquiry has to be conducted for revocation. In this case, the suspension itself happened after two years and enquiry for revocation is still in progress. He also submitted that prescribed timeline for proceedings under Regulation 23 has not been followed in this case. 6. Learned AR submits that the order of the Commissioner is in accordance with law and the CHA had knowingly involved in mis-declaration of the goods and classification of the goods and was availing exemption and therefore, order of prohibition passed in exercise of power is perfectly an end order. He also submits that Regulation 23 has empowered to the Commissioner to prohibit the CHA in operating from any section or sections. 7. We have considered the submissions ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ioner of Customs till such time such partner, director or authorised employee passes the said examination 19. Suspension of licence. - (1) Notwithstanding anything contained in regulation 18, the Commissioner of Customs may, in appropriate cases where immediate action is necessary, suspend the licence of a Customs Broker where an enquiry against such agent is pending or contemplated. (2) Where a licence is suspended under sub-regulation (1), the Commissioner of Customs shall, within fifteen days from the date of such suspension, give an opportunity of hearing to the Customs Broker whose licence is suspended and may pass such order as he deems fit either revoking the suspension or continuing it, as the case may be, within fifteen days from the date of hearing granted to the Customs Broker: Provided that in case the Commissioner of Customs passes an order for continuing the suspension, the further procedure thereafter shall be as provided in regulation 20. 20. Procedure for revoking licence or imposing penalty. (1) The Commissioner of Customs shall issue a notice in writing to the Customs Broker within a period of ninety days from the date of receipt of an offence report, stati....
X X X X Extracts X X X X
X X X X Extracts X X X X
....after considering the report of the inquiry and the representation thereon, if any, made by the Customs Broker, pass such orders as he deems fit either revoking the suspension of the license or revoking the licence of the Customs Broker or imposing penalty not exceeding the amount mentioned in regulation 22 within ninety days from the date of submission of the report by the Deputy Commissioner of Customs or Assistant Commissioner of Customs, under sub-regulation (5) : Provided that no order for revoking the license shall be passed unless an opportunity is given to the Customs Broker to be heard in person by the Commissioner of Customs. 23. Prohibition. -Notwithstanding anything contained in these regulations, the Commissioner of Customs may prohibit any Customs Broker from working in one or more sections of the Customs Station, if he is satisfied that such Customs Broker has not fulfilled his obligations as laid down under regulation 11 in relation to work in that section or sections. 8. The action to suspension a licence or a revocation of a licence can be taken only by licence issuing authority. In the scheme of Customs Broker licensing, if a Customs House issues licence, with....
X X X X Extracts X X X X
X X X X Extracts X X X X
....HA across the country without issuance of any show-cause notice. From the above, it can be seen that the Commissioner herself who is the licensing authority has observed that what happened in Bangalore was an aberration and it is not sufficient to suspend operation of the CHA across the country without issuance of any show-cause notice. The Commissioner has come to the conclusion that what has happened is aberration. This in our opinion shows that there is no justification for prohibiting the CHA in operating in any of the sections in any Custom House. As regards suspension, there is a requirement of a compulsory enquiry that should follow and within specific time limit, an order has to be passed whereas in respect of prohibition, there is no such restriction and the order passed by the Commissioner prohibits CHA from working until further orders. It does not even say that prohibition order will be reviewed as and when action is initiated by jurisdictional Commissioner (licensing authority) is completed. Either suspension or prohibition in a particular Commissionerate should precede an enquiry and if prohibition succeeds suspension and revocation of suspension, in our opinion, the....