Judgment :- K.K.TATED J. 1 Union of India has preferred this appeal under section 130 of the Customs Act, 1962 against the order dated 10th April, 2008 passed by the Customs, Excise and Service Tax Appellate Tribunal, West Zonal Bench at Mumbai setting aside the order of suspension passed by the Commissioner of Customs dated 4th May, 2005. 2 The above mentioned appeal was admitted by this Court on 19th January 2009 to consider the following substantial question of law. Whether in the facts and circumstances of the case the CESTAT is right in setting aside the Order-in-Original No.33/2007 dated 13-12-2007 based on the order of the Settlement Commission dated 14-11-2006? 3 The Commissioner vide his order dated 4th May, 2005 suspended the respondents_ licence on the ground of involvement of the power of attorney holder of CHA firm Mr.Pradeep Ambre in the case of mis-declaration of goods imported viz. ball bearings. The request made in this behalf by the DRI, Mumbai leading to import of ball bearing in the guise of Borax Decahydrate by some importers with the complicity of Custom House Agent M/s East and West Shipping Agency was also considered. 4 The show cause notice dated 25th July 2005 was issued to one M/s Sonam Enterprises and M/s Giriraj Enterprises, wherein one of the co-noticees was Pradeep H.Ambre along with 12 other persons. In the said show cause notice CHA, the respondents were not made a party. Mr.Pradeep Ambre was made a party who was holding power of attorney on behalf of the respondents. The Noticees in that case approached the Settlement Commissioner and got their cases settled. However, suspension of the respondents CHA was neither revoked nor any enquiry report was furnished to the respondents to present their defence. 5 Without issuing any notice and/or hearing the respondents, by an order no. 24/2005 dated 4th May 2005 suspended the CHA licence of the respondents. 6 The respondents aggrieved by the order of suspension dated 4th May 2005, preferred an appeal No.C/443/05-Mum before the Customs, Excise and Service Tax Appellate Tribunal, (West Zonal Bench) Mumbai. 5 Without issuing any notice and/or hearing the respondents, by an order no. 24/2005 dated 4th May 2005 suspended the CHA licence of the respondents. 6 The respondents aggrieved by the order of suspension dated 4th May 2005, preferred an appeal No.C/443/05-Mum before the Customs, Excise and Service Tax Appellate Tribunal, (West Zonal Bench) Mumbai. In the said appeal, the Appellate Tribunal by its order dated 24th July 2006 revoked the order of suspension with liberty to the department to hold and complete enquiry within one month from the date of receipt of the said order and to take such action as may be permissible under the law. 7. Being aggrieved by the aforesaid order dated 24th July 2006, the appellants preferred the Customs Appeal No.67 of 2006 in this Court. The said Customs Appeal No.67 of 2006 came to be dismissed by order dated 25th April, 2007 on the ground that the Customs Department did not initiate enquiry. 8. The Commissioner of Customs (General), New Customs House, Mumbai in exercise of powers conferred under Sub-Regulation 1 of Regulation 22 of the CHA Licensing Regulations 2004 appointed the Enquiry Officer by an order dated 30th November, 2006 to enquire into the charges framed against the respondents. 9. The Enquiry Officer after following due process of law held that Mr.Pradeep H.Ambre, authorised signatory of the respondents had committed misconduct by taking active part in the act of smuggling. It was thus held that the charges were proved against the respondents beyond doubt. It was, thus, held that CHA M/s East and West Shipping Agency has violated the sub regulation (C) of Regulation 20 of the CHA Licensing Regulations, 2004. The Commissioner of Customs (General), Mumbai Zone, Mumbai vide its order in original dated 13th December, 2007 ordered forfeiture of the entire amount of security deposit of the CHA firm M/s East and West Shipping Agency i.e. respondents and revoked its licence. 10. During pendency of the misconduct proceedings against the respondents M/s Sonam Enterprises and M/s Giriraj Enterprises along with other co-noticees including Mr.Pradeep Ambre authorised agent of the respondent CHA approached the Settlement commissioner. The Settlement Commissioner after hearing all the parties was pleased to hold that no allegation of any conscious knowledge could be attributed to Shri Pradeep Ambre. 10. During pendency of the misconduct proceedings against the respondents M/s Sonam Enterprises and M/s Giriraj Enterprises along with other co-noticees including Mr.Pradeep Ambre authorised agent of the respondent CHA approached the Settlement commissioner. The Settlement Commissioner after hearing all the parties was pleased to hold that no allegation of any conscious knowledge could be attributed to Shri Pradeep Ambre. Paragraph 21.3 of the said order of the Settlement Commissioner dated 14th November, 2006 reads as under: 21.3 From the settlement application filed by the applicants and coapplicants, we find that no allegation of any conscious knowledge can be attributed to Shri Pradeep Ambre. In fact, it is surprising that though the allegation of import of Ball Bearings in the guise of Borax Decahydrate in the past is leveled, any statement of Customs officer who examined and allowed clearance of the said past consignments has not even been recorded by DRI, nor any allegation against the examining officer for abetting has been leveled in the show cause notice, in absence of which it is not possible to even assume the probability of clearance of Ball Bearings in the guise of Borax Decahydrate. It is evident from the Show Cause Notice itself that even the seized consignments were opened and examined only after interception by DRI. Moreover, neither even a single piece of ball bearings alleged to be present in the past consignments was found in any warehouse, nor any instance of sale of any bearing has been established. In these circumstances, we, therefore, hold that even on the basis of preponderance of the past consignments is not established and that all allegations leveled against Shri Pradeep Ambre are baseless and unfounded. (Emphasis supplied) 10 The respondents aggrieved by order dated 13th December, 2007 referred to in paragraph 9 (supra) preferred appeal no.C/1142 of 2007 before the Customs, Excise and Service Tax Appellate Tribunal, West Zonal, Bench at Mumbai. 11. The aforesaid appeal was allowed by the Appellate Tribunal holding that the Settlement Commissioner having granted immunity to Mr. (Emphasis supplied) 10 The respondents aggrieved by order dated 13th December, 2007 referred to in paragraph 9 (supra) preferred appeal no.C/1142 of 2007 before the Customs, Excise and Service Tax Appellate Tribunal, West Zonal, Bench at Mumbai. 11. The aforesaid appeal was allowed by the Appellate Tribunal holding that the Settlement Commissioner having granted immunity to Mr. Pradeep Ambre from payment of penalty and prosecution on the premise that conscious knowledge of mis-declaration against Mr.Pradeep Ambre could not be proved by the revenue and as such the Commissioner could not have revoked the CHA licence on the ground that Shri Pradeep Ambre was involved in misdeclaration of the goods and ought to have dropped the misconduct proceedings against the respondents. 12. Being aggrieved by the aforesaid order dated 10th April, 2008 passed bythe Customs, Excise and Service Tax Appellate Tribunal, appellant has preferred the present appeal. 13. Mr.Ashokan learned Counsel for the appellant submitted that the impugned order dated 10th April, 2008 passed by the CESTAT is illegal, bad in law and contrary to the Customs House Agents Licensing Regulations Act, 2004. He further submitted that CESTAT has erred in relying upon the finding recorded by the Settlement Commissioner in its order dated 14th November, 2006 since those proceedings were initiated by Shri Pradeep Ambre, and not by the respondents. 14. Mr. Ashokan further submitted that CESTAT has failed to appreciate that misconduct proceedings initiated against Shri Pradeep Ambre, the power of attorney holder of the respondent CHA were initiated under the provisions of CHA Licensing Regulations 2004; whereas the proceedings before the Settlement Commission were independent of the said Regulations as such finding recorded by the Settlement Commissioner could not have been relied upon. He thus submits that CESTAT ought to have appreciated that Shri Pradeep Ambre in his statement recorded on 28th January, 2005 under section 108 of the Customs Act, 1962 inter alia has admitted that one Shri Manish Doshi known to him wanted to clear ball bearings under the guise of some other cheap goods without declaring the same to the Customs Department and that the said Shri Manish Doshi asked him to suggest the name of some item which is regularly being cleared by the Customs and which could get cleared without any problem. Upon insistence of Shri Manish Doshi and on his assurance Shri Pradeep Ambre suggested the name of Borax Decahydrate. Upon insistence of Shri Manish Doshi and on his assurance Shri Pradeep Ambre suggested the name of Borax Decahydrate. He thus submits that the involvement of Mr.Pradeep Ambre, respresenting the respondents cannot be ruled out. 15. Mr.Ashokan learned Counsel for the appellant submits that CESTAT has erred in setting aside the order-in-original dated 13th December, 2007 solely relying on the order of the Settlement Commissioner dated 14th November, 2006. He further submits that the Settlement Commissioner did not have any power to pass the order dated 14th November, 2006 and the same was passed without jurisdiction. In his submission, the order passed by the Settlement Commission is ab-initio, null and void being without jurisdiction. In support of his contention he relied on a judgment in the case of the Tata Consultancy Engineers Vs. The Workmen employed under them A.I.R.1981 S.C.599 wherein Apex Court held that the party cannot confer jurisdiction on the Court by consent. What is without jurisdiction will always remain so. For the same proposition of law he further relied on the judgment in the case of Kiran Singh and others Vs. Chaman Paswan and others reported in A.I.R.1954S.C.340. In this case the Apex Court held that a decree passed by a Court without jurisdiction is a nullity and that its invalidity could be set up whenever and wherever it is sought to be enforced or relied upon, even at the stage of execution and even in collateral proceedings. 16. Mr.Ashokan, learned Counsel for the appellants further submitted that though the order passed by the Settlement Commissioner is not challenged by the appellants, the same cannot come in their way while challenging the impugned order dated 16th April, 2008 passed by the Appellate Tribunal since the order passed by the Settlement Commissioner was without jurisdiction. In support of his contention, he relied on the judgment in the case of Himmatrao Ukha Mali and others Vs. Popat Devram Patil and another reported in A.I.R. 1999 Bombay 10. In this case, this Court has held that if a decision has been rendered between the same parties by a Court which has no jurisdiction to entertain and decide the suit, that judgment cannot operate as res judicata between the same parties in subsequent proceedings. Popat Devram Patil and another reported in A.I.R. 1999 Bombay 10. In this case, this Court has held that if a decision has been rendered between the same parties by a Court which has no jurisdiction to entertain and decide the suit, that judgment cannot operate as res judicata between the same parties in subsequent proceedings. On the basis of this, Mr.Ashokan submitted that CESTAT has erred in setting aside the order in original no.33 of 2007 dated 13th December, 2007 relying upon the order of the Settlement Commissioner dated 14th November, 2006. 17 On the other hand, learned Counsel Mr.Kantawalla for respondents submitted that the appellants failed to challenge the order dated 14th November, 2006 passed by the Settlement Commissioner till today and, therefore, at this stage the appellants have no right to state that the said order is passed without any jurisdiction. He further submitted that once the department has accepted the said order passed by the Settlement Commissioner dated 14th November, 2006 and acted pursuant thereto then they cannot turnaround and submit that the order passed by the Settlement Commissioner is without jurisdiction. He further submits that the said order is a judicial order passed by the Competent Court or authority. Hence it is legal and binding on the revenue. 18. Considering the facts and circumstances of the present case, it is admitted fact that till today the appellants have not challenged the order dated 14th November, 2006 passed by the Settlement Commissioner. The Department has accepted the said order passed by the Settlement Commissioner. The impugned order dated 10th April, 2004 passed by the Tribunal is solely based on the order passed by the Settlement Commissioner in favour of Shri Pradeep Ambre, the power of attorney holder of the respondents. The order passed by the Settlement Commissioner cannot be brushed aside considering the scheme of Chapter XVIA. It must be held good in law so long as it is not set aside. 19. It is an admitted fact that the order passed by the Settlement commissioner under the Customs Act, 1962 is in judicial proceedings and it is a judicial order. Section 127-M of the Customs Act, 1962 provides that the proceedings before the Settlement Commission is a judicial proceedings. 19. It is an admitted fact that the order passed by the Settlement commissioner under the Customs Act, 1962 is in judicial proceedings and it is a judicial order. Section 127-M of the Customs Act, 1962 provides that the proceedings before the Settlement Commission is a judicial proceedings. The said section reads as under: 127M: Proceedings before Settlement Commission to be judicial proceedings:-Any proceedings under this Chapter before the Settlement Commission shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 and for the purposes of section 196 of the Indian Penal Code (45 of 1860). 20. At this juncture it is relevant to take stock of Section 11 (explanation VIII) of the Code of civil Procedure, which reads as under: 11. Resjudicata:..... Explanation VIII: An issue heard and finally decided by a Court of limited jurisdiction, competent to decide such issue, shall operate as res judicata in a subsequent suit, notwithstanding that such Court of limited jurisdiction was not competent to try such subsequent suit or the suit in which such issue has been subsequently raised. Section 11 of the Code of Civil Procedure lays down that an order or issue which had arisen directly or substantially between the parties or their privies and decided finally by a competent Court or Tribunal of a limited jurisdiction which include pecuniary jurisdiction will operate as res udicata in the subsequent suit or proceedings notwith--standing the fact that such Court of limited jurisdiction was not competent to try the subsequent suit. The effect of insertion of explanation VIII by 1976 amendment is that it has widened the scope of section 11 as the earlier restriction that both the Courts should also be of concurrent pecuniary jurisdiction for a decision on an issue in previously decided suit to become resjudicata in the subsequent suit has been removed. 21. In the present case the Settlement commissioner passed the order after hearing both sides. The said order is not challenged by the appellants till today. The doctrine of resjudicata has received a statutory sanction in the Code as a matter of prudence and to give due weight age to the finding or decision so as to reach a finality in the matter of a dispute between the same parties or litigating under the same parties. The doctrine of resjudicata has received a statutory sanction in the Code as a matter of prudence and to give due weight age to the finding or decision so as to reach a finality in the matter of a dispute between the same parties or litigating under the same parties. The doctrine, thus, is to provide finality of dispute between the parties based on the principle of prudence so as to give finality to a finding of a Court rather than permitting the parties to go on to trial more or less on the same issue over again and thus introducing a possibility of conflict of views. 22. In the present case, the Settlement Commissioner in its order dated 14th November, 2006 in paragraph 21.3 specifically held saying we find that no allegation of any conscious knowledge can be attributed to Shri Pradeep Ambre. If this finding is accepted by the appellant and if not challenged by preferring any proceedings to challenge the order passed by the Settlement Commissioner, they cannot now turn around and say that the Tribunal erred in passing the impugned order dated 10th April, 2004 on the basis of the same. 23. Considering these facts and circumstances of the case, the question of law is answered in affirmative in favour of the respondents and against the appellant. The appeal is dismissed with no order as to costs.