Mandatory time limits in Customs House Agent proceedings barred forfeiture and penalty after delayed departmental action.

The mandatory time schedule for initiating action against a Customs House Agent was not followed, as the show cause notice was issued long after the offence report and the order was passed after further delay. Because the departmental action did not comply with the prescribed timeline, forfeiture of the security deposit and the penalty were set aside. The question of cancellation of the CHA licence was left untouched, since it was not part of the challenge before the tribunal.

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Issues: Whether the forfeiture of security deposit and imposition of penalty under the Customs House Agents Licensing Regulations could be sustained when the show cause notice and order were issued beyond the prescribed time schedule.

Analysis: The appeal turned on the mandatory nature of the time schedule prescribed for action against a Customs House Agent. The show cause notice was issued long after the offence report and the order followed after a further substantial delay. The binding character of the prescribed timeline had been consistently recognised, and the departmental action was found not to have complied with that schedule.

Conclusion: The forfeiture of the security deposit and the penalty could not be sustained and were set aside in favour of the appellant.

Final Conclusion: The impugned order was interfered with only to the extent of monetary consequences, while the question of cancellation of the CHA licence was left untouched as it was not part of the present challenge.

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