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Appearance:

Shri S. Krishnandh, Advocate Shri B.Satish Sundar, Advocate For the Appellant Shri K.S.V.V. Prasad, JC (AR) For the Respondent CORAM :
Honble Shri P.K. Das, Judicial Member Honble Shri Mathew John, Technical Member Date of Hearing :18-6-2013 Date of Pronouncement: 10-10-2013 Per Mathew John:
1. The appellant is a Customs House Agent (CHA for short) licensed under Custom House Agents Licensing Regulations, 2004 (CHLAR for short) by Custom House, Chennai. The appellant had filed three Bills of Entry on behalf of M/s Ravi Enterprises, Surat for import of Mulberry Raw Silk Yarn, under Advance License Scheme in Customs Freight Stations (CFS) in Chennai. Certain investigations were conducted by Directorate of Revenue Intelligence, Surat in respect of such imports. It was found that the importer had obtained Advance Licenses from DGFT by giving false declaration regarding the factory premises and the importer was not having any machinery or manufacturing facility to process Raw Mulberry Silk Yarn that was being imported. The imported goods were being sent to Bangalore for sale to other parties who were not concerned with export obligations of the goods imported under the Advance Licenses. Since the DGFT licences were subject to actual user condition for manufacture of specified products, Revenue made out a case against the importer for having contravened the provisions of Export Import Laws and provisions of Customs Act,1962 with regard to post import conditions in respect of goods imported without payment of duty and proceeded against the importer. During investigation, it was seen that while filing such Bills of Entry the appellant had not obtained any authorization from the importer for whom the imports were facilitated by them; not verified the antecedents and credentials of the importers; not personally interacted with the importers at the time of import and after the Customs Clearance of the consignment; not verified the signatures of the authorized person of both the High Seas Seller and buyer firms (importers) on the High Sea Sale agreement; not taken instructions at any point of time from the importers regarding the booking of imported cargo after Customs Clearance, but had taken such instructions from the High Seas Sellers for booking the imported cargo to Bangalore instead of sending the same to the premises of the license holder at Surat/Ankleshwar; not intimated the Customs Authorities at Chennai about the diversion of the goods imported under Advance authorization Scheme to Bangalore.
REGULATION22.?PROCEDURE FOR SUSPENDING OR REVOKING LICENCE UNDER REGULATION 20. (1) The Commissioner of Customs shall issue a notice in writing to the Customs House Agent [within ninety days from the date of receipt of offence report, stating the grounds on which it is proposed to suspend or revoke the licence and requiring the said Customs House Agent to submit within thirty days], to the Deputy Commissioner of Customs or Assistant Commissioner of Customs nominated by him, a written statement of defense and also to specify in the said statement whether the Customs House Agent desires to be heard in person by the said Deputy Commissioner of Customs or Assistant Commissioner of Customs.
(3)?The Deputy Commissioner of Customs or Assistant Commissioner of Customs shall, in the course of inquiry, consider such documentary evidence and take such oral evidence as may be relevant or material to the inquiry in regard to the grounds forming the basis of the proceedings, and he may also put any question to any person tendering evidence for or against the Customs House Agent, for the purpose of ascertaining the correct position.
(4)?The Customs House Agent shall be entitled to cross-examine the persons examined in support of the grounds forming the basis of the proceedings, and where the Deputy Commissioner of Customs or Assistant Commissioner of Customs declines to examine any person on the grounds that his evidence is not relevant or material, he shall record his reasons in writing for so doing.
(5)?At the conclusion of the inquiry, the Deputy Commissioner of Customs or Assistant Commissioner of Customs shall prepare a report of the inquiry recording [his findings and submit his report within ninety days from the date of issue of a notice under sub-regulation (1).
(6)?The Commissioner of Customs shall furnish to the Customs House Agent a copy of the report of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, and shall require the Customs House Agent to submit, within the specified period not being less than [thirty days], any representation that he may wish to make against the findings of the Deputy Commissioner of Customs or Assistant Commissioner of Customs.