Urgent suspension of a customs broker licence requires prima facie material, not mere suspicion of misuse or delay in records.

Delay in furnishing records may reflect adversely on a custom house agent's competence, but it does not by itself justify immediate suspension of the licence. The power under Regulation 21(2) of the Custom House Agents Licensing Regulations, 1984 is confined to urgent situations and cannot be invoked merely on a departmental suspicion of misuse. In the absence of material supporting even a prima facie view that continuance of the licence was undesirable, pre-emptory suspension was not warranted. The suspension order was accordingly held unsustainable and set aside.

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Issues: Whether the suspension of the custom house agent's licence under Regulation 21(2) of the Custom House Agents Licensing Regulations, 1984 was justified on the basis of delay in furnishing records and suspicion of misuse of the licence.

Analysis: The delay in producing the information called for reflected adversely on the agent's competence, but that by itself did not justify immediate suspension of the licence. The power under Regulation 21(2) is meant for situations requiring urgent action, and cannot be exercised merely because the department suspects misuse of the licence. In the absence of evidence supporting even a prima facie view, the continuance of the licence could not be said to be so undesirable as to warrant pre-emptory suspension.

Conclusion: The suspension order was not justified and was set aside in favour of the assessee.

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