TaxTMI 
TaxTMI 
TaxTMI 
2006 (11) TMI 227
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....ed under Regulation 22 has been set in motion and the CHA also participated in the proceedings by submitting a representation against the order of suspension of the License and requesting for a personal hearing, whether it is correct for the Hon'ble Tribunal to obstruct the due process of law by prescribing a limited frame and declaring the very suspension order null and void if the enquiry could not be completed within the specified time? (2) When as per Regulation 22(8) of the CHALR, 2004 that a Customs House Agent could become aggrieved only on account of any decision or order passed under Regulation 20 which is subject to compliance with the requirement of Regulation 22 and sub-regulation (7) of Regulation 22 for the purpose of preferr....
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.....D. No.73/2004), Executive Operations and K. Rajkumar, Office Assistant, involved in fraudulent availment of export incentives by the following exporters operated through the said M/s. Sindhu Cargo Services Limited, Coimbatore. (1) Aargee Exports, Tirupur. (2) A.S.P. Trading, Tirupur. (3) Christle India, Tirupur. (4) Royal Stitch, Tirupur. (5) Lintas Int, Tirupur. (6) Raghu Exports, Coimbatore. (7) Maha Fashions, Tirupur. (8) &....
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....f CHA, clearly established the fact of involvement of the CHA in the fraudulent export activities indulged by the said exporters. The CHA themselves, had associated with Selvanathan for availing export incentives (drawback) to the tune of Rs. 3.5 Crores, approximately, during the period from 2003-04 to 2005-06 and indulged in the above activities which resulted in loss of revenue to the Government. On further investigation, Shri Balaraju, Managing Director of M/s. Sindhu Cargo Services Limited, produced the copies of the fake BRC of the following exporters, which were available with him : (1) Raghu Exports (2) Uma Maheswari Exports (3) &n....
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.... Managing Director are fully aware of the fraud taken place in their Branch Office at Coimbatore. In view of the same, the Revenue was of the view that it is essential to cancel the license of CHA under Regulation 20(1) of CHALR, 2004. Further investigation reveals the following irregularities : (i) The CHA has failed to obtain authorisation from its clients for processing documents in Customs and hence it appears that the CHA has not complied with Regulation 13(a) of CHALR, 2004. (ii) The CHA failed to advice his clients to comply with provisions of the Customs Act 1962, and thus failed to comply with the obligations imposed upon them in terms of Regulation 13(d) of the CHALR, 2004. (iii) The CHA failed to exercise due diligence to asce....
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....t aside. 4. Learned Standing counsel appearing for the Revenue submitted that the Appellate Tribunal ought not have imposed a stipulated time limit for passing the order, which would amount to compel the Revenue to decide the issue within a short time without considering the gravity of the offence as well as time that would have been required to complete the pending investigation. The Commissioner of Customs is right in suspending the License of Custom House Agent, wherein enquiry against such agent is pending. Therefore, it is wrong on the part of the Appellate Tribunal to give a mandatory direction to complete the enquiry and pass final orders against the CHA within a stipulated time. Hence the order of the Appellate Tribunal is wrong, i....
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....taining to the CHA's activities within the jurisdiction of the Commissioner of Customs, Coimbatore. No decision has been brought to my notice to the effect that suspension of CHA's licence within the jurisdiction of one Commissionerate of customs on the basis of investigative results pertaining to the CHA's activities within the jurisdiction of another Commissionerate of Customs is ipso facto unsustainable in law. Hence, bearing in mind the judicial view on the effect of fraud vide ICI India Ltd's case (supra), I am not inclined to grant any stay of operation of the suspension order. However, in terms of the Tribunal's Larger Bench decision in the case of Freightwings and Travels Ltd. (supra), the CHA should be given a post-decisional heari....