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2009 Supreme(Mad) 5117

High Court of Judicature at Madras
THE HONOURABLE CHIEF JUSTICE MR. H.L. GOKHALE & THE HONOURABLE MR. JUSTICE N. PAUL VASANTHAKUMAR
C.V. Karunakaran & Others
Versus
The Chairman, Central Board of Excise and Customs, New Delhi & Others
W.A.Nos.498 & 1125 of 2009 W.P.Nos.10330, 12240 & 13366 of 2009 & Connected Miscellaneous Petitions
Decided On : 27-11-2009

Advocates Appeared:
For the Appellants:Joseph Prabakar, P. Saravanan, Hari Radhakrishnan, Advocates.
For the Respondents:K. Ravi Anantha Padmanaban, Advocate.

Ratios:
a. There cannot be an estoppel against Statute.
b. Mere acquisition of eligibility to apply for acquiring any status does not create vested right on such persons to claim such status.


Headnote:(A)Customs Act, 1962 (52 of 1962)-Sec.146, 159A-Customs House Agent-Licence-Issue of licence-Regulation-Change of regulation-Interpretation of statutes-Repeal-Effect-Vested right- Petitioners had earlier passed the written test prescribed for eligibility to apply for CHA-Before inviting applications for grant of licence to such agents, Regulations were changed-New Regulation prescribed examination with new syllabus, new set of educational qualifications etc.-Petitioners filed writ petition and contended that since they had already passed examination under old regulation, they are entitled to apply for licence-Respondents contended that the passing of examination confers them only an eligibility to make application and do not create any vested right in them to get licence and since new regulation has been brought into force, the petitioners could be eligible to apply for licence only if they comply with new regulation-Held, mere pass in an eligibility examination did not create any vested right in the applicants and the Government is entitled to change the Regulations-On change of regulation, the applicants become eligible to apply for licence only if they pass examination under new Regulation-Appeals dismissed.

        (B)Customs Act, 1962 (52 of 1962)-Sec.146, 159A-Customs House Agent-Licence-Issue of licence-Regulation-Change of regulation-Eligibility-Acquisition of eligibility-Vested right- Mere acquisition of eligibility to apply for acquiring any status does not create vested right on such persons to claim such status.

       Appellants/writ petitioners at best were having liberty to apply for licence. The same cannot be treated as a vested right. The appellants have not even applied for licence under Regulation of the year 1984 and the eligibility condition having been changed drastically in the year 2004 due to the intricacies of the procedures to be followed by the Customs House Agents, the respondents cannot be found fault with. Para 19

        (C)Interpretation of statutes-Estoppel-Statute-There cannot be an estoppel against Statute.

        The regulations issued in the year 2004 is also having statutory force. It is well settled proposition of law that there cannot be any estoppel against statute. Para 21

       

Judgment :-

N. PAUL VASANTHAKUMAR, J.

The above writ appeals are directed against the common order passed in W.P.Nos.336 and 341 of 2009, dismissing the writ petitions filed by the appellants herein.

2. In W.P.Nos.10330, 12250 and 13366 of 2009, the petitioners seek to quash the public notice No.140/2008 dated 312. 2008 and to direct the first respondent therein to accept the candidature of the petitioners for the grant of licence under Regulation 9(1) of the CHARL, 2004 so as to act as Customs House Agent.

3. Since the issues involved in the writ petitions as well as in the writ appeals are identical, both the writ petitions and writ appeals are heard together and this Common Judgment is passed.

4. (i) The case of the appellants and the writ petitioners is that they are engaged in the work of clearance of goods through Customs for the past several years and they are claiming that they have all passed the examination prescribed as per Regulation No.9 of the Customs House Agent Licensing Regulations (CHALR), 1984, which was framed under section 146(2) of the Customs Act, 1962. According to the appellants/petitioners, regular licences are to be issued only to those persons, who are qualified as per the examinations referred to in Regulation 9 of 1984.

(ii) The Central Board of Excise and customs made a new regulation called Customs House Agent Licensing Regulations, 2004 pursuant to the recommendations of the High Power Committee to simplify the processes and procedures for the grant of CHA licences. Under Regulation 9 of 2004, a candidate applying for licence must pass the examination in terms of Regulation 8 thereof for getting licence and the 1984 procedures for the grant of licence viz., first granting a temporary licence before passing the qualifying examinations, and then granting a regular licence after passing qualifying examinations within a year, has been done away with. A clarificatory circular was issued on 6. 2004 and the Board also issued instructions on 310. 2007. In Public Notice No.140 of 2008 dated 312. 2008, the second respondent invited applications for the grant of licence only from the persons qualified under Regulation 8 and as per the said notification, the persons qualified under Regulation 9 of 1984 were rendered ineligible.

(iii) According to the appellants/petitioners, between the years 1998 and 2004, the second respondent did not invite new applications and therefore they could not apply for issuance of licence, even though they have passed the examinations under Regulation No.9 of 1984. According to the appellants/petitioners the syllabus or subject for the examinations provided under Regulation 9(3) of 1984 and Regulation No.8(6) of 2004 are almost same. The new subjects added are Online filing of Electronic Shipping Bills or Bills of Entry and Indian Customs and Central Excise Electronic Commerce/Electronic Date Interchange Gateway (ICEGATE) and Indian Customs Electronic Date Interchange Systems (ICES) and the provisions of Prevention of Corruption Act, 1988. According to the appellants/petitioners, the preamble of Regulations, 2004, gives protection to the appellants/petitioners since it provides that actions which had been taken or omitted to be taken are saved. However, the second respondent is not giving effect to this beneficial provision and therefore the appellants are affected. It is submitted that the appellants are entitled to be treated on par with other persons, who had passed the examinations conducted under Regulation 8 of the Regulations, 2004, while granting licence pursuance to the issuance of Public Notice No.140 of 2008, dated 312. 2008. By making the above averments the appellants/petitioners filed the writ petitions.

5. The third respondent in the writ appeals filed counter affidavit before the learned single Judge by contending that mere passing the examination conducted under Old Regulation No.9, without obtaining a permanent licence under the said regulation will not confer

































































































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