Commissioner's CHA License Revocation Overturned for Violating Natural Justice Principles The High Court found that the Commissioner of Customs violated principles of natural justice by revoking the petitioner's CHA license without disclosing ...
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Commissioner's CHA License Revocation Overturned for Violating Natural Justice Principles
The High Court found that the Commissioner of Customs violated principles of natural justice by revoking the petitioner's CHA license without disclosing the grounds for disagreement with the Inquiry Officer's findings. The Court set aside the original order, directing the Commissioner to provide the grounds for disagreement, allow the petitioner to respond, and then pass a fresh order after hearing the petitioner. The Commissioner was given specific timelines to follow in this process, and the petitioner was prohibited from conducting business under the CHA license until a new order was issued. The Court made the rule absolute in the specified terms, with no order as to costs.
Issues involved: Challenge to revocation of CHA license by Commissioner of Customs without disclosing grounds for disagreement with Inquiry Officer's findings, violation of principles of natural justice.
In the present case, the petitioner challenged the order of the Commissioner of Customs revoking their CHA license despite the Inquiry Officer finding no charges proved against the petitioner. The High Court held that the impugned order was violative of natural justice as the grounds for disagreement were not disclosed to the petitioner, depriving them of the opportunity to respond. The Court set aside the original order and directed the Commissioner to provide the grounds for disagreement, allow the petitioner to respond, and then pass a fresh order after hearing the petitioner.
The Court directed the Commissioner to furnish the grounds for disagreement with the Inquiry Officer's findings to the petitioner within 3 weeks, following which the petitioner would have 2 weeks to file a reply. Subsequently, the Commissioner was instructed to pass a fresh order on merits after hearing the petitioner within 4 weeks from receiving the petitioner's reply. It was emphasized that the petitioner was prohibited from conducting business under the CHA license until a new order was issued.
The High Court concluded by making the rule absolute in the specified terms, with no order as to costs.
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