S.S.V. Bhadra Shipping Agencies Vs. Commissioner of Cus. (Sea) - Court Judgment

Excerpt:
1. the present appeal is against the order passed by the commissioner of customs under the provisions of custom house agents licensing regulations, 1984 vide which the cha licence issued to the present appeal has been suspended with immediate effect.2. we find that the reasons for suspending the licence under the said provisions as given by the commissioner in his impugned order are that one of the employee of the appellant company had filed the bill of entry pertaining to another cha m/s. blue whale shipping company in which he was not at all a staff and suppressed the said fact from the department with a mala fide intention to evade customs duty. appellants have contended that the said manager of the appellant company, even if has done something wrong, same was not for and on behalf of the appellant cha. he had acted on behalf of another cha m/s. blue whale shipping co. as such the conclusion of the commissioner that the appellants have misused their cha licence is without any basis. as such, they contend that it was not an appropriate case where the commissioner should have taken drastic step of suspension of their licence which has resulted in pecuniary damage to them.3. after hearing both sides, we find that shri dilli babu, though, is an employee of the appellant company, has dealt with the importer in his independent capacity and by filing the bill of entry on behalf of another cha m/s. blue whale shipping company. as such the appellant cannot be held, liable for illegal activity of shri dilli babu.accordingly, we are of the view that it is not an appropriate case where the commissioner should have invoked the provisions of regulations 21(2) of the chalr. accordingly, we set aside the suspension order and allow the appeal with consequential relief to the appellant. the eh application also gets disposed of accordingly.

Judgment:
1. The present appeal is against the order passed by the Commissioner of Customs under the provisions of Custom House Agents Licensing Regulations, 1984 vide which the CHA licence issued to the present appeal has been suspended with immediate effect.

2. We find that the reasons for suspending the licence under the said provisions as given by the Commissioner in his impugned order are that one of the employee of the appellant company had filed the Bill of Entry pertaining to another CHA M/s. Blue Whale Shipping Company in which he was not at all a staff and suppressed the said fact from the department with a mala fide intention to evade Customs duty. Appellants have contended that the said Manager of the appellant company, even if has done something wrong, same was not for and on behalf of the appellant CHA. He had acted on behalf of another CHA M/s. Blue Whale Shipping Co. As such the conclusion of the Commissioner that the appellants have misused their CHA licence is without any basis. As such, they contend that it was not an appropriate case where the Commissioner should have taken drastic step of suspension of their licence which has resulted in pecuniary damage to them.

3. After hearing both sides, we find that Shri Dilli Babu, though, is an employee of the appellant company, has dealt with the importer in his independent capacity and by filing the Bill of Entry on behalf of another CHA M/s. Blue Whale Shipping Company. As such the appellant cannot be held, liable for illegal activity of Shri Dilli Babu.

Accordingly, we are of the view that it is not an appropriate case where the Commissioner should have invoked the provisions of Regulations 21(2) of the CHALR. Accordingly, we set aside the suspension order and allow the appeal with consequential relief to the appellant. The EH application also gets disposed of accordingly.