Immediate suspension of Customs Broker licence requires necessity and recorded reasons; delayed action was set aside.

Immediate suspension of a Customs Broker licence is an exceptional measure and requires recorded reasons, immediate necessity and satisfaction of the prescribed preconditions. Here, the suspension was issued long after the disputed imports, after the relevant Bills of Entry and DGFT amendment sheets were already before customs, and the record did not support allegations of mis-declaration or suppression. The assessment documents had been disclosed to the assessing officer, and the action was also inconsistent with the Board's circular requiring prompt action and post-decisional hearing. The interim suspension was therefore unsustainable and was set aside, allowing the Customs Broker to continue operations pending final adjudication of the show-cause notice.

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Issues: Whether the interim suspension of the Customs Broker licence was sustainable in the absence of immediate necessity and the prescribed preconditions for suspension.

Analysis: The licence had been suspended long after the disputed imports and after the relevant documents, Bills of Entry and DGFT amendment sheets were already before the customs authorities. The assessment records showed that the import classification issue had been considered in light of the Tribunal's earlier ruling, and the documents filed by the Customs Broker were placed before the assessing officer without concealment. In these circumstances, the allegations of mis-declaration or suppression against the Customs Broker were not supported by the record. The power of immediate suspension under the governing regulations is exceptional and depends on the existence of immediate necessity and recorded reasons. The delay in invoking suspension, coupled with the absence of such preconditions and the inconsistency with the Board's circular on prompt action and post-decisional hearing, rendered the suspension unsustainable.

Conclusion: The interim suspension was not justified and was set aside. The Customs Broker was entitled to function pending final adjudication of the show-cause notice.

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