Customs House Agent licence suspension set aside where alleged misconduct was not linked to the firm's knowledge or involvement.

Suspension of a Customs House Agent licence was held unsustainable where the alleged irregularity in clearance was attributed to an employee acting in a personal capacity, without the firm's knowledge or involvement. The Department had issued show cause notices to the importer, the personnel manager and the G Card holder, but not to the firm, and no enquiry for revocation had been initiated against it. In the absence of material linking the firm to the misconduct, continued suspension was not justified. The Department remained free to proceed under the licensing regulations if a later enquiry produced evidence against the firm.

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Issues: Whether the suspension of the Customs House Agent licence was sustainable when the alleged misconduct was attributed to an employee acting without the firm's knowledge or involvement.

Analysis: The licence was suspended on the basis of alleged irregular conduct connected with clearance of an import consignment. The Department issued a show cause notice to the importer, the personnel manager and the concerned G Card holder, but not to the Customs House Agent firm. No enquiry had been initiated against the firm for revocation of the licence, and no material was produced to controvert the appellant's stand that the employee had acted in his personal capacity without the firm's knowledge. In the absence of evidence showing the firm's involvement, continued suspension was not justified, though the Department was left free to take action under the licensing regulations if enquiry later revealed evidence against the appellant.

Conclusion: The suspension of the Customs House Agent licence was not sustainable and was set aside in favour of the appellant.

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