Case Law Details
Commissioner of Central Excise and Customs Vs Bon Freight (CESTAT Bangalore)
Introduction: In a significant ruling, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Bangalore upheld the decision of the Commissioner of Customs and Central Excise, Thiruvananthapuram to revoke the suspension of M/s. Bon Freight’s Custom House Agents (CHA) license. The decision was based on the lack of conclusive evidence suggesting the direct involvement of the respondent in the alleged misconduct.
Analysis: The controversy arose when Mr. K. T. Soman, a G Card Holder acting on behalf of the respondent, was accused of irregularities in the clearance of unaccompanied baggage and influencing officers at the Customs House. This led the Assistant Commissioner to suspend the CHA license of M/s. Bon Freight, holding them accountable for violating Regulation 19(8) of the Custom House Agent License Regulation, 2004. The respondent appealed this decision to the Commissioner, who found insufficient evidence to conclusively link the respondent to the alleged illegal clearances. The Commissioner’s decision to revoke the suspension of the CHA license triggered an appeal by the Revenue to the CESTAT. However, the Tribunal dismissed the appeal as infructuous due to the license renewal and revocation of the respondent up to 2023, rendering the case moot.
Conclusion: The CESTAT Bangalore’s ruling has reinforced the principle of presumption of innocence until proven guilty. The Tribunal upheld the Commissioner’s decision to revoke the suspension of M/s. Bon Freight’s CHA license due to the lack of concrete evidence proving their involvement in the alleged misconduct. This judgment highlights the importance of substantive evidence in the revocation or suspension of licenses, thereby setting a precedent for future cases.
FULL TEXT OF THE CESTAT BANGALORE ORDER
This appeal is filed by the Revenue against Order-in-Original No.01/2012 Cus. Tech. (Commr.) dated 6.11.2012 passed by the Commissioner of Customs and Central Excise, Thiruvananthapuram.
2. The respondent, M/s. Bon Freight, are holders of regular Custom House Agents (CHA) and they have been transacting business in the Trivandrum Customs House. Revenue alleged that Shri K. T. Soman, a G Card Holder, was authorised by the respondent to act on their behalf. Mr. K. T. Soman had committed irregularities in clearance of unaccompanied baggage and also tried to influence the officers working Customs House. Therefore, the respondent was held responsible for violating the provisions of Regulation 19(8) of Custom House Agent License Regulation, 2004, and the Assistant Commissioner suspended the CHA license. Aggrieved by this order, respondent filed an appeal before Commissioner. The learned Commissioner revoked the suspension of CHA licence of the respondent on the ground that no conclusive evidence was produced as a proof of direct involvement of the respondent in the alleged illegal clearances of the unaccompanied baggage. Aggrieved by this order of the Commissioner, Revenue is in appeal before us.
3. Shri K. A. Jathin, learned Authorised Representative for the Revenue placed a letter dated 1.6.2023 from the Assistant Commissioner of Customs, Cochin stating that the license of the respondent has been revoked and is renewed up to 23.05.2028, hence the matter has become infructuous.
4. None for the respondent.
5. In view of the submission made by the Revenue, the appeal is dismissed as infructuous.
(Order pronounced in open court 14.07.2023.)
