Customs house agent licence suspension needs hearing; ex parte continuation pending enquiry was held unjustified.

A customs house agent licence may be suspended pending enquiry under Regulation 21(2) of the CHA Licensing Regulation, 1984, but continued ex parte suspension without giving the licence holder an opportunity of hearing was found unjustified. Where the allegations against the exporter and the CHA's alleged role remained unproved, indefinite suspension could not be maintained on the existing record. The proper course was to complete the regular enquiry under the Regulations, and any further action had to follow due process.

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Issues: Whether the suspension of the customs house agent licence under Regulation 21(2) of the CHA Licensing Regulation, 1984 could be sustained when no opportunity of hearing was given and the allegations were still under enquiry.

Analysis: The authority had power to suspend a licence pending enquiry under Regulation 21(2), but continued suspension without hearing the licence holder was held unjustified. The allegations against the exporter and the claimed role of the CHA were still unestablished, and the record did not support indefinite continuation of ex parte suspension. The proper course was to proceed through regular enquiry under the Regulations.

Conclusion: The suspension order was unsustainable and the appeal succeeded. The department was left free to take action in accordance with the Regulations through due enquiry if required.

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