CHA licence suspension cannot continue where employee misconduct is independent, delay is material, and enquiry prejudice is unproven.

Suspension of a CHA licence under Regulation 20(2) could not be sustained where the alleged forgery was attributed to a former employee acting independently, the licence-holder had promptly made good the duty shortfall, and the record did not show knowledge of the forgery by the CHA. The Tribunal treated the nine-month delay in issuing the suspension order as material and found no basis to conclude that continuation of the suspension was necessary to protect the enquiry or the revenue, especially since the relevant documents were already with the department. The suspension was set aside, while the department's right to proceed under the disciplinary framework was preserved.

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Issues: Whether suspension of the CHA licence could be continued in the circumstances, having regard to the delay in passing the suspension order, the employee's alleged forgery, and the availability of proceedings under the disciplinary regulation.

Analysis: The suspension had been ordered under Regulation 20(2) of the Customs House Agent Licensing Regulations, 2004 on the allegation that forged cash duty paid stamps were affixed on bills of entry. The Tribunal noted that the misconduct was attributed to a former employee acting on his own, that the CHA had subsequently made good the duty shortfall on notice, and that the order did not establish the CHA's knowledge of the forgery. It also treated the delay of about nine months in issuing the suspension order as material, and found no basis to conclude that allowing the CHA to continue business pending enquiry would prejudice the proceedings, especially since the relevant documents were already with the revenue. The Tribunal further observed that the department could still initiate action under Regulation 23.

Conclusion: The suspension could not be continued and was set aside; the appeal was allowed.

Final Conclusion: The order of suspension was annulled, while the department's right to proceed independently under the disciplinary framework was preserved.

Ratio Decidendi: Suspension of a CHA licence pending enquiry cannot be sustained where the alleged misconduct is attributable to an employee acting independently, the licence-holder has promptly rectified the duty shortfall, and the record does not show that continuance of suspension is necessary to protect the enquiry or the revenue.

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