TaxTMI 
TaxTMI 
2015 (12) TMI 1203
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....only. 3. On 15.9.2012, the petitioner approached the Superintendent, Customs, ICD Kheda seeking back to town permission of the said consignment of green marble reasoning that the export order had been cancelled by the overseas buyer. It is alleged that the back to town permission was sought when the authenticity of the exporter was enquired into by the Departmental Authorities. Inspite of request to produce the exporter, the authorized signatory of petitioner- firm failed to present the representative of Exporter firm and the enquiry by the Preventive Branch of Head quarter also could not locate the exporter. Further, enquiry conducted through Additional Commissioner (AEII), Central Excise, Delhi-II also could not locate the exporter and it was reported that the genuineness of the exporter is doubtful. This resulted in violation of Regulation 13 (O) of Custom House Agents Licensing Regulations, 2004 (for short 'CHALR, 2004'). In view of this, the Commissioner, Customs and Central Excise, Indore, exercising its power conferred under Regulation 21 of CHALR, 2004 prohibited the petitioner-firm from transacting any CHA related business in Indore Commissionerate vide order date....
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....exure A) are relevant which reads as under :- "8.4 I find that the CHA has failed to take a note of the fact that the Board's Circular No.09/2010-Customs dated 08.04.2010 makes the KYC norms more effective and strict with a definite aim to curb the possibilities of fictitious and bogus IEC holders. In fact, these KYC norms cast an even greater responsibility on the CHAs to ensure and re-ensure the genuineness of their prospective clients before they take up the documents for filing before the Customs authorities. I find it essential to reproduce provisions of Regulation 13, which deals with the obligations of CHA: 13. Obligations of a Customs House Agent-A Customs House Agent shall (a)................... (b).................. (c)................... ........................ ........................ (o) verify antecedent, correctness of importer Exporter Code (IEC) Number, Identity of his client and functioning of his client at the declared address by using reliable, independent, authentic documents, data or information. 8.5. The Regulation 13, (o) makes it mandatory that the CHA has to verify antecedents, IEC Code, identity of the client, which are obvi....
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....ating the obligations placed upon the CHA in terms of Regulation 13 of the CHALR 2004. I, therefore, do not find any reason to show any leniency towards the CHA, as far as the facts and circumstances of the case are concerned. ORDER In view of my findings above, I prohibit the CHA M/s. Prathamesh Shipping Pvt. Ltd., from transacting any business in any of the Customs ports falling under the jurisdiction of Commissioner, Customs & Central Excise, Indore, in terms of Regulation 21 of CHALR 2004. This order is issued without prejudice to any other action that may be taken against the CHA or any other person (s)/firm(s) etc. under the provisions of the Customs Act, 1962 and Rules/Regulations framed thereunder or under any other law for the time being in force for the present or any other past violations committed by them." 5. Learned counsel for the petitioner has drawn our attention to Regulation 21 of CHALR, 2004 and clause 6 of Circular No.9/10, Customs dated 8.4.2010 and submitted that necessary directions and circulars issued by the authorities have been applied by the petitioner, the learned authority committed an error in prohibiting the petitioner from transaction of a....
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....that the circular issued by the Board are binding on the Department. 8. In the matter of Commr., Central Excise, Bolpur v/s. M/s. Ratan Melting and Wire Industries reported as AIR 2008 SC (Supp) 666, the Apex Court held that when the Supreme Court or High Court declares the law on a question that will be binding on the department, and if a circular is issued which is not in conformity or contrary to the law laid down by the Apex Court or High Court, the decision of the Court shall be binding on the department. 9. In the case of Bharat Heavy Electricals Ltd. (supra), the show cause notice was issued by an unauthorized persons and, therefore, the Division Bench has held that the entire action initiated is unsustainable, void, ab-initio and stand vitiated. In para 11 of the judgment the Court has observed that when departmental circular is issued by the Board, it would be in accordance to the power available to the Board under Section 37B and until and unless it is not shown that the circular is contrary to any law laid down by the Supreme Court or judgment of High Court, the same shall be binding on all the officers of the Excise Department and only on the ground that the circular ....