Licence suspension requires a proximate nexus to the alleged misconduct; an unsupported punitive suspension was set aside.

Suspension of a Customs House Agent licence was found unsustainable where the alleged misconduct and forgery arose from proceedings at another Customs House and no proximate factual or temporal nexus was shown to the suspension at Mumbai. The order also failed to identify the relevant bill of entry or connect the alleged act to the immediate cause of action. On that basis, the suspension was treated as punitive in effect rather than a justified regulatory measure, and the existing suspension order was set aside.

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Issues: Whether the suspension of a Customs House Agent licence at Mumbai Customs House was justified on the basis of alleged misconduct and forgery connected with proceedings at another Customs House.

Analysis: The alleged forgery was stated to have occurred in the course of clearance of imported goods under the DEPB scheme at Amritsar Customs House, while the impugned suspension affected the appellant's licence at Mumbai. The order did not indicate the relevant bill of entry or disclose any proximate factual or temporal link between the alleged act and the suspension. Suspension of a licence in these circumstances would operate as a punitive measure without the required nexus to the immediate cause of action. On that basis, the existing suspension order could not be sustained.

Conclusion: The suspension of the licence was unjustified and was set aside in favour of the appellant.

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