Natural justice and reasoned orders bar licence cancellation where disagreement precedes hearing and reasons are not disclosed.

Cancellation of a CHA licence and forfeiture of the security deposit cannot be sustained where the Commissioner has already disagreed with the Enquiry Officer on the crucial charges before considering the CHA's reply and hearing, making the hearing an empty formality. An order imposing such serious civil consequences must also disclose reasons for differing from the Enquiry Officer's findings. Because the impugned order was non-speaking and breached natural justice, it was unsustainable and was set aside in favour of the assessee.

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Issues: Whether the Commissioner's order cancelling the CHA licence and forfeiting the security deposit was liable to be set aside for breach of natural justice and for being a non-speaking order.

Analysis: The order recorded that the Commissioner had already disagreed with the Enquiry Officer on the crucial charges before considering the CHA's reply and hearing, rendering the hearing an empty formality. The order also failed to disclose reasons for disagreement with the Enquiry Officer's findings. Such an order lacked the reasons required to sustain a serious civil consequence like cancellation of licence.

Conclusion: The impugned order was unsustainable and had to be set aside in favour of the assessee.

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