Interim CHA licence suspension stands on prima facie material, but final action requires disclosure of relied-upon documents and a fair hearing.

Interim suspension of a CHA licence was not interfered with where investigation material, including statements under Section 108 of the Customs Act, disclosed a prima facie case of serious irregularity in filing the bill of entry and clearing goods, so departmental proceedings could continue under the licensing regulations. At the same time, final action had to comply with natural justice: the Commissioner was required to supply the relied-upon statements and documents, issue notice setting out the charges, allow time for a written defence, and grant a hearing before passing the final order. The challenge to interim suspension failed, but the matter had to proceed afresh with fair procedure.

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Issues: (i) Whether the order suspending the CHA licence called for interference at the interim stage pending proceedings under the Customs House Agents Licensing Regulations, 2004. (ii) Whether the appellant was entitled to supply of the relied-upon statements and a fair opportunity to meet the allegations before final adjudication.

Issue (i): Whether the order suspending the CHA licence called for interference at the interim stage pending proceedings under the Customs House Agents Licensing Regulations, 2004.

Analysis: The suspension was supported by statements recorded under Section 108 of the Customs Act, 1962 and other material gathered during investigation, which indicated a prima facie case of serious irregularity in filing the bill of entry and clearing goods. In view of the stage of the proceedings, the Tribunal declined to interfere with the suspension order and treated the matter as one where the departmental action could continue under Regulation 20 and the connected licensing framework.

Conclusion: The suspension order was not interfered with and the challenge failed, in favour of the Revenue.

Issue (ii): Whether the appellant was entitled to supply of the relied-upon statements and a fair opportunity to meet the allegations before final adjudication.

Analysis: Although interim interference was refused, the Tribunal held that principles of fair procedure required the Commissioner to furnish the statements and documents relied upon, issue notice setting out the charges, allow time to file a defence, and grant hearing before passing a final order under the licensing regulations.

Conclusion: The appellant was entitled to disclosure of the relied-upon material and a hearing before final adjudication.

Final Conclusion: The suspension was allowed to operate at the interim stage, while the adjudicating authority was directed to proceed afresh after supplying the material and affording an effective opportunity of defence.

Ratio Decidendi: Interim suspension of a CHA licence will not be interfered with where investigation yields prima facie incriminating material, but final action must comply with natural justice by supplying the relied-upon material and granting a fair hearing.

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