TaxTMI 
TaxTMI 
2008 (5) TMI 52
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....ith immediate effect. It was found by the Commissioner that the appellant-firm had failed to fulfill its obligations under Regulation 13(a), 13(d), 13(e) and 13(f) of the CHALR, 2004. From the order it is seen that the Commissioner arrived at the above conclusion on the finding that one M/s. Panacea World Wide Traders had smuggled Red Sanders to Singapore in the guise of rice. On an earlier occasion the same party had imported AC compressors in the guise of computer parts. In these transactions one Shri Subramaniam had handled the documentation on the strength of authorization issued by Sandeep. A nexus between the said Shri, Subramanian and Sandeep is implied in the order. The appellants have taken the ground that suspension of Customs Hou....
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....re to promptly intimate the Customs authorities the failure of its client to follow the provisions. The order reproduces the obligations under the sub clauses of Regulation 13 and finds that the appellant had violated the same. 3. Suspension under Regulation 20(2) is authorized only where the Commissioner finds that the CHA should be prevented from continued functioning when an enquiry against it is pending or contemplated. This obviously presupposed that the CHA being allowed to continue to function would jeopardize such an enquiry. It also implied that the CHA was involved in certain activity which endangered the interest of the Revenue. In the instant case, the apparent cause of action of M/s. Panacea World Wide Traders trying to smug....
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....The violations by the CHA are narrated in the impugned order including the serious offence of attempt to smuggle out red sanders. 5. I have carefully considered the case records and the submissions made by both sides. As per Regulation 20(2), in appropriate cases where enquiry is contemplated, the licence of the CHA can be suspended. Obviously, the purpose of suspension of licence is to keep the CHA out of the Custom House and to prevent it from either perpetrating an illicit transaction or its tampering with the evidence of its involvement in such an action which had already taken place. In the instant case there is no finding that M/s. Sandeep & Company was involved in any illegal transaction or of abetting any such act involving viola....
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....the power under Regulation 21(2) was resorted to apparently without spelling out in the impugned order as to whether any immediate action was necessary so as to suspend the licence of the appellants with immediate effect. Undoubtedly a plain reading of the Regulation 21(2) clearly stipulates that the requirement to take immediate action is a sine qua non to the suspension of a licence under Regulation 21(2) because such suspension is not by way of any punishment as is contemplated by Regulation 21(2), but is required to cater to a situation warranting immediate action. The purpose of resorting to immediate suspension of a licence because of some immediate action is to immediately the activities of the clearing agent so as to disable him fro....