VECTOR FREIGHT FORWARDERS Vs. CC

JUDGEMENT

(1.) THIS appeal filed by M/s. Vector Freight Forwarders, Tuticorin (VFF), a CHA attending customs clearance work at Custom House, Tuticorin challenges an order of the Commissioner of Customs, Tuticorin vide which the suspension of the CHA licence of the appellant ordered under Regulation 20(2) of Custom House Agents Licence Regulations, 2004 (CHALR) is continued. Under an order dated 18.11.08, the Commissioner of Customs suspended the CHA licence of the appellant, a proprietary concern run by Shri. R. Theenathayalan, with immediate effect pending enquiry. The impugned order had been passed after hearing the appellants pending completion of detailed investigation into the alleged failures of the CHA in complying with the CHALR.

(2.) THE facts of the case are that on intelligence received, a container carrying a consignment of cocopeat exported from Tuticorin port was called back by the DRI from Malaysia. On examination, the Malaysian Customs had found that the container carried 10.76 MTs red sander logs of value Rs. 43.04 lakhs. DRI initiated further investigation and steps for adjudicating the violations involved. Investigation conducted into the circumstances of export of red sander logs in the guise of cocopeat revealed that VFF had handled the export of goods covered by Shipping Bill No. 1955099 dated 09.07.2008, under cover of which the red sander logs had been exported. One Mr. G. Ravi employed by the CHA at Tuticorin had handed over Annexures 'A'/Appendices 'A' signed by Shri Theenathayalan to one Shri R. Sivaraman, who canvassed and undertook the work relating to export of the consignment covered by the above Shipping Bill. The red sander logs exported by the appellants were seized by Tuticorin Customs on 12.08.08. Shri Theenathayalan's statement was recorded by the officers of DRI on 22.09.08 when he explained how, owing to the irresponsible conduct of Shri G. Ravi contraband came to be exported with the assistance of VFF without his being personally involved in the transactions. On 18.11.08, the Commissioner of Customs, Tuticorin suspended the CHA licence of VFF finding that the appellants had failed to comply with various provisions of Regulation 13 of Custom House Agents Licence Regulations, 2004. Vide the impugned order, the Commissioner ordered continued suspension of the CHA licence of the appellant finding that it had failed to fulfill its obligations under Regulations 13(a), 13(b), 13(d) and 13(e) of CHALR'04, by allowing third parties to use customs documents which had facilitated smuggling of contraband red sander logs. As per the impugned order, detailed investigation into the conduct of the CHA was pending completion.

(3.) DURING hearing, the appellants relied on several judicial authorities in support of the plea that delayed suspension of licence was not sustainable in law. We have heard the Ld. SDR who relies on a decision of the Tribunal in Swastik Shipping Agency Pvt. Ltd., 2008 (226) ELT 605 (Tri. -Mum.), wherein revocation of licence of CHA who was found to have violated Regulation 13(d), 13(e) and 20(2) of CHALR'04 and guilty of aiding and abetting and misdeclaration of goods was upheld.