M/s. AVI Clearing Agency vs C.C., Jaipur

The appellant (CHA) is in appeal against the order dated 29.11.2011 whereby CHA license was suspended. He has also filed an application to

bring additional ground on record. The facts of the case are that on the basis of intelligence gathered by the DRI, Zonal Unit, Ahmedabad, that some

importers engaged in the import of Glass Chatons, Furniture and Mobile Accessories were resorting to gross undervaluation with the connivance of

the CHA M/s. Fairdeal Shipping Agency Pvt. Ltd., Jaipur searches were carried out by the DRI at their office premises and recovered various

incriminating documents. The e-mail account of the said CHA was accessed and print outs of various mails were retrieved from the inbox and sent

folder of the mail account. It was observed that the import invoices, from two overseas suppliers M/s. Perfect Trading, Hongkong and M/s. Sunland

Trading Ltd., Hongkong, were received in the inbox folder of the e-mail account of the said CHA from the e-mail of the overseas supplier. The

invoices received from the overseas supplier were in MS-Excel format and complete in all respect, except the rate and value columns, which were

found blank. These two columns of Rate and Value were filled up by the CHA with grossly undervalued figures and after taking a printout of such

invoices they were presented before Customs for seeking clearance of the imports. Shri Vinod Kumar Sharma, Director of the said CHA firm in his

statement recorded by DRI admitted to have committed the offence of undervaluation by way of tampering of import invoices and clearing the import

consignments on t he basis of such fabricated import documents. He also admitted that he had committed the above offences in order to enable the

importers to evade customs duty, in the process of which he also benefitted. Thereafter, proceedings under Regulation 20(2) of CHALR, 2004 were

initiated and the CHA license was suspended on 5.9.2011. After suspension of CHA license, a personal hearing was granted to the appellant on

8.11.2011. Thereafter, impugned order was passed for continuation of suspension of CHA license. But after that no proceedings were initiated under

Regulation 22 of CHALR, 2004 against the appellant. In these circumstances the appellant is in appeal with a prayer that the order of suspension of

CHA license dated 29.9.2011 be revoked.

Learned Counsel appearing on behalf of the appellant submits that as per circular No.9/2001 proceedings against CHA can be initiated on the basis

of offence report received against the CHA and license can be suspended but the proceedings under Regulation (22) of CHALR are to be completed

within 9 months from the date of receipt of offence report. As of now more than 2 years have been passed but proceeding under Regulation (22) has

not been completed. Therefore, impugned order be set aside in the light of the decision of the this Tribunal in the case of Vinod Tomar, reported in

2011 (272) ELT 564 (Tri.-Del.).

On the other hand, learned A.R. submits that as the matter is still in investigation of DRI and the offence alleged against the appellant is grave and

serious, therefore, impugned order is required to be continued till investigation is completed.

Heard both sides and considered the submissions.

As per Board s circular dated 8.4.2010 proceedings against CHA is required to be completed within 9 months of the date of receipt of offence

report. Admittedly, in this case time has been passed for more than 2 years after receipt of offence report. Therefore, relying on the decision in the

case of Vinod Tomar (supra) the appellants are entitled for relief. In these circumstances we revoke the suspension of CHA license No.

01/CHALR/2011 ordered vide impugned order dated 29.9.2011.

Revenue is at liberty to proceed against the appellant under Regulation (22) of CHALR, 204. Appeal is disposed off in the above manner.

Accordingly, Misc. application is also disposed off.

(Dictated and pronounced in the Open Court.)