Natural justice and reasoned orders govern customs broker licence withdrawal; the impugned order was set aside and remanded.

Withdrawal of a customs broker licence carrying adverse civil consequences requires prior notice, a reasonable opportunity of hearing, and a reasoned order. A prior intimation that later non-compliance could lead to withdrawal does not satisfy natural justice for the actual withdrawal decision, and the order must disclose its own reasons. The Bombay High Court held the withdrawal unsustainable for breach of natural justice and absence of reasons, and remanded the matter for fresh decision after hearing the petitioners.

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Issues: Whether withdrawal of the customs broker licence without prior hearing and without recorded reasons was sustainable.

Analysis: The impugned withdrawal of licence entailed adverse civil consequences and therefore required prior notice and a reasonable opportunity of hearing. A prior intimation that non-compliance with the later regulations could result in withdrawal did not satisfy the requirement of natural justice for the actual withdrawal order. The order also had to speak for itself and disclose reasons for withdrawing the benefit granted.

Conclusion: The withdrawal order was unsustainable for breach of natural justice and absence of reasons. The matter was remanded for fresh decision after hearing the petitioners.

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