Immediate preventive suspension of customs broker licence is unjustified when delayed action and enquiry remedies remain available.

Regulation 21(2) suspension of a Customs House Agent licence is described as an immediate preventive measure for urgent cases where delay would justify prompt action to protect revenue. The note states that suspension was not justified where the employee's misconduct occurred without informing the principals, the principals were not examined by the investigating authority, and the department waited nearly 11 months after the incident. It further notes that enquiry and further action could still be pursued under Regulation 23, so continued suspension was set aside.

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Issues: Whether the suspension of the Customs House Agent licence under Regulation 21(2) of the Customs House Agents Licensing Regulations, 1984 was justified in the facts of the case.

Analysis: The licence was suspended on account of misconduct attributed to an employee while handling an export consignment, but the material showed that the employee had acted without informing the appellants and that the appellants had not been examined by the investigating authority. The power under Regulation 21(2) is meant for immediate preventive action where delay would justify urgent suspension to safeguard revenue. Here, the suspension was ordered nearly 11 months after the incident, and the department could still proceed under Regulation 23 for enquiry and further action. These circumstances weighed against continued suspension of the licence.

Conclusion: The suspension under Regulation 21(2) was not justified and was set aside; the appellants succeeded on this issue.

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