Customs House Agent licence suspension fails where mandatory show cause notice is not issued within the prescribed time.

Immediate suspension of a Customs House Agent licence may be ordered in urgent cases, but continuation of that suspension depends on strict compliance with Regulation 22, including a written show cause notice within ninety days of the offence report. As no such notice was issued within the prescribed time and the suspension order was only later sought to be treated as notice, the mandatory procedure was not followed. The suspension orders were therefore unsustainable and were set aside.

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Issues: Whether the suspension and continuation of suspension of the Customs House Agent licence could be sustained when no show cause notice was issued within the time prescribed under Regulation 22(1) of the Customs House Agents Licensing Regulations, 2004.

Analysis: Regulation 20(2) permits immediate suspension in appropriate cases where urgent action is necessary, but the subsequent enquiry mechanism is governed by Regulation 22. That provision requires the Commissioner to issue a written notice within ninety days from receipt of the offence report, stating the grounds and requiring a defence. The record showed that after the suspension orders, no such notice was issued within the prescribed period, and the attempt to treat the suspension order itself as a show cause notice came much later. In these circumstances, the statutory procedure mandated by Regulation 22(1) was not followed.

Conclusion: The suspension orders were unsustainable and were set aside. The appeal was allowed in favour of the assessee.

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