Natural justice in CHA licence action requires consideration of the reply to any earlier show-cause notice relied upon.

When an authority relies on an earlier show-cause notice in proceedings affecting a Customs House Agent licence, it must also consider the noticee's reply to that notice before taking adverse action. Failure to do so denies a fair hearing and breaches natural justice because the omitted reply forms part of the material relied upon. The suspension order was therefore unsustainable and was set aside, with the matter remanded for fresh adjudication after consideration of the earlier proceedings and after granting a reasonable opportunity of hearing.

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Issues: Whether the suspension of the Customs House Agent licence was vitiated for breach of natural justice in not considering the CHA's reply to the earlier show-cause notice relied upon in the adjudication.

Analysis: The adjudicating authority had taken on record the earlier DRI show-cause notice while deciding the notice issued for suspension or revocation of the CHA licence, but did not consider the CHA's reply to that earlier notice. Since the earlier notice formed part of the material relied upon for the licence action, omission to consider the reply caused denial of a fair hearing. The defect went to the root of the adjudication and justified interference.

Conclusion: The suspension order could not be sustained and was set aside, with the matter remanded for fresh adjudication after considering the earlier proceedings and after granting a reasonable opportunity of hearing.

Ratio Decidendi: When an authority relies upon an earlier show-cause notice in proceedings affecting a licence, it must also consider the noticee's reply to that notice before taking adverse action; failure to do so violates natural justice and warrants remand.

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