TaxTMI 
TaxTMI 
2014 (9) TMI 237
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.... the country of origin and under-valued the goods so as to evade payment of higher Customs Duty. The petitioner was asked to show cause as to why penalty should not be imposed in terms of Section 112(a) and 114AA of the Customs Act, 1962. 5. By an Order-in-Original dated 31.01.2011, the Additional Commissioner of Customs imposed a penalty upon the petitioner. Thereafter, the Commissioner of Customs, Tuticorin passed an order on 06.09.2012 prohibiting the petitioner from operating in Tuticorin Customs Station, by passing an order in terms of Regulation 21 of the Regulations. It appears that the copy of this order was forwarded by the Commissioner of Customs Tuticorin to the Commissioner of Customs, Chennai who is the Licensing Authority. 6. Thereafter, the first Respondent issued a show cause notice dated 12.11.2012, alleging that the petitioner failed to fulfil the obligations under Regulation 13(b), (d) and (e) of the Regulations 2004. By the said show cause notice, the petitioner was called upon to show cause to the Deputy Commissioner of Customs, who is the second Respondent herein and who was appointed as the enquiry officer, as to why the CHA licence should not be revoked in....
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....forfeiture of the whole or part of the security, on certain specific grounds stated in Clauses (a) (b) and (c) of sub-Regulation (1) of Regulation 20. The procedure for suspending or revoking licence under Regulation 20 is prescribed in Regulation 22. 13. In other words, the power to suspend or revoke the licence is to be traced to Regulation 20 and procedure for suspending or revoking the licence is to be found in Regulation 22. The power of the first Respondent to pass the impugned order is traceable to Regulation 20 and since there is no dispute in this case with regard to the same, it is enough if we take note of Regulation 22. Hence Regulation 22 is extracted as follows:- "22. Procedure for suspending or revoking licence under Regulation 20:- (1) The Commissioner of Customs shall issue a notice in writing to the Customs House Agent within ninety days from the date of receipt of offence report, stating the grounds on which it is proposed to suspend or revoke the licence and requiring the said Customs House Agent to submit within thirty days to the Deputy Commissioner of Customs or Assistant Commissioner of Customs nominated by him, a written statement of defense and also to ....
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....as he deems fit 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). (8)Any Customs House Agent aggrieved by any decision or order passed under regulation 20 or sub-regulation (7) of regulation 22, may prefer an appeal under section 129A of the Act to the Customs, Central Excise and Service Tax Appellate Tribunal established under sub-section (1) of section 129 of the Act. " 14. Under sub-regulation (1) of Regulation 22, the Commissioner of Customs should issue a notice in writing to the Customs House Agents within 90 days from the date of receipt of offence report. There is no dispute on the question of law that if a notice in writing is not issued within 90 days from the date of receipt of offence report, the proceedings under Section 22 (1) will stand vitiated. But in the case on hand, there is a dispute about two things namely, (1) as to what an offence report is; and (2) as to how to calculate the period of 90 days prescribed in Regulation 22(1). 15. According to the petitioner, the Department of Revenue Intelligence investigated into the alleged incident and issued....
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....ms may, subject to the provisions of regulation 22, revoke the licence of a Customs House Agent and order for forfeiture of part or whole of security, or only order forfeiture of part or whole of security, on any of the following grounds, namely : (a) failure of the Customs House Agent to comply with any of the conditions of the bond executed by him under regulation 10; (b) failure of the Customs House Agent to comply with any of the provisions of these regulations, within the jurisdiction of the said Commissioner of Customs or anywhere else; (c) any misconduct on his part, whether within the jurisdiction of the said Commissioner of Customs or any where else which in the opinion of the Commissioner renders him unfit to transact any business in the Customs Station. 18. The above regulation has only 3 ingredients namely (i) failure to comply with the bond conditions (ii) failure to comply with the regulations and (iii) a misconduct, for any of which, the license can be revoked. Since the above regulation does not use the expression "offence report", we have to presume that a report indicating the availability of any one of the above 3 ingredients should be construed as an o....
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....st a CHA in suspension or revocation proceedings by the Customs field formations. However, the Commissioner of Customs, who had authorised a CHA to operate on 'C' form intimation at a customs station, may take action in deserving cases under regulation 21 of CHALR, 2004 for prohibiting the working of such defaulting CHA in any section of the Custom House/Customs Station." 22. It is seen from what is extracted above, that the Commissioner of Customs, Tuticorin was obliged to inform the details of the violation to the first respondent herein who had issued licence to the petitioner. The earliest intimation that the first respondent received, was the show cause notice dated 18.05.2010. Even if this communication had not been received by the first respondent, the first respondent received the order-in-original dated 31.01.2011. In paragraph 16.B of the affidavit in support of the writ petition, the petitioner made a positive averment that the show cause notice and the order-in-original were received by the first respondent. Therefore, he ought to have issued the show cause notice within 90 days. 23. Relying upon the decision of the Supreme Court In Sambhaji vs. Gangabai....