Revocation of CHA licence - Commissioner has power to disagree with findings of Inquiry Officer: High Court LB
THE question before the Larger Bench of the Bombay High Court was:
Under the provisions of Regulation 22 of the Custom House Agents Licensing Regulations, 2004, is the Commissioner of Customs entitled to differ with the findings which have been arrived at by the Deputy Commissioner of Customs or, as the case may be, the Assistant Commissioner of Customs in the report submitted under clause (5) of the Regulation ?
Under Regulation 22(1), it is the Commissioner who is empowered to issue notice to the CHA setting out the grounds on the basis of which he proposes to suspend or revoke the CHA license and require the CHA to submit his written statement of defense to the Deputy Commissioner of Customs or Assistant Commissioner of Customs nominated by the Commissioner of Customs. Under Regulation 22(2), the Commissioner is empowered to direct the Deputy Commissioner of Customs or Assistant Commissioner of Customs to inquire into the grounds which are disputed by the CHA. Regulation 22(3) to Regulation 22(5) set out the mode and the manner in which the inquiry is to be conducted by the inquiry officer and submit the report to the Commissioner. Regulation 22(6) requires the Commissioner to furnish to the CHA a copy of the inquiry report and require the CHA to give his representation against the findings of the Inquiry Authority. Regulation 22(7) requires the Commissioner to consider the inquiry report and the representation if any made by the CHA and pass such orders as he deems fit.
Thus, under Regulation 22 it is the Commissioner who is empowered to issue showcause notice to the CHA to suspend or revoke the CHA license and it is the Commissioner who is empowered to pass 'such orders as he deems fit' after considering the inquiry report and the representation of the CHA, if any. Therefore, whether the inquiry report is in favour of the CHA or not, it is the Commissioner who has to pass the final order as he deems fit on the showcause notice issued by the Commissioner. The words 'such orders as he deems fit' in Regulation 22(7) leave no manner of doubt that it is entirely at the discretion of the Commissioner, whether to agree or disagree with the inquiry report and pass such orders as he deems fit on the Show Cause Notice.
So, the Larger Bench of the High Court held that under Regulation 22 of the 2004 Regulations, the Commissioner is empowered to disagree with the findings recorded in the inquiry report and pass such orders as he deems fit and if the CHA is aggrieved by the order of the Commissioner, he is entitled to challenge the said order by filing an appeal.