Pre-decisional hearing required before suspending an excise licence where the statutory power is silent on procedure.

Rule 181 of the Central Excise Rules, 1944 was read as requiring a pre-decisional hearing before suspension or cancellation of an L-6 licence because the power affected civil rights and did not expressly exclude natural justice. An order of suspension was treated as substantive rather than merely interim, so the audi alteram partem rule applied unless excluded by necessary implication. In the absence of any opportunity to show cause before the adverse action, the procedure was unlawful and the impugned order was liable to be quashed.

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Issues: Whether an order suspending an L-6 licence under the Central Excise Rules, 1944 could be sustained without giving the licence-holder an opportunity of hearing before action under Rule 181.

Analysis: The order of suspension was treated as a substantive order and not merely a temporary step pending inquiry. Rule 181 of the Central Excise Rules, 1944 did not expressly exclude a pre-decisional hearing, and where a statutory power affects civil rights but is silent on procedure, the principles of natural justice are imported to make the exercise of power reasonable. In the absence of any opportunity to show cause before the adverse order, the procedure adopted was held to be unlawful.

Conclusion: A pre-decisional opportunity of hearing was mandatory before suspension or cancellation of the licence, and the impugned order was liable to be quashed.

Ratio Decidendi: When a statutory power affecting rights is silent on hearing, unless excluded by necessary implication, audi alteram partem must be read into the provision before adverse action is taken.

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