Immediate suspension under Regulation 16 requires recorded necessity and procedural compliance; continued suspension set aside and inquiry to be completed.

Immediate suspension of a customs broker's licence under Regulation 16 is permissible only in appropriate cases with recorded reasons demonstrating necessity, and its continuation requires compliance with Regulation 16's procedural safeguards and completion of inquiry steps under Regulation 17; absent an evidential record and post-decisional hearing the continued suspension was unjustified, the impugned continuation is set aside, the appellants may resume business, and the licensing authority is directed to expeditiously complete the Regulation 17 inquiry.

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Issues: (i) Whether the immediate suspension of the customs broker's licence and its continuation under Regulation 16 of the Customs Brokers Licensing Regulations, 2018 was legally sustainable; (ii) Whether the alleged violations of Regulations 1(4) and 10(a), 10(b), 10(d) and 10(e) of the Customs Brokers Licensing Regulations, 2018 justify invocation and continuation of suspension under Regulation 16.

Issue (i): Whether the immediate suspension and its continuation under Regulation 16 of the Customs Brokers Licensing Regulations, 2018 was legally sustainable.

Analysis: Regulation 16 permits suspension in appropriate cases where immediate action is necessary and when an inquiry is pending or contemplated; it requires recording reasons and affording post-decisional hearing as per the regulation. CBIC Instruction No.24/2023 emphasises that suspension must not be routine or mechanical and mandates recording reasons demonstrating appropriateness. The impugned order did not evidentially demonstrate appropriateness nor record reasons justifying immediate suspension and its continuation; inquiry proceedings under Regulation 17 had not been completed and the procedural steps mandated by Regulation 17 were not followed prior to the continued suspension.

Conclusion: The immediate suspension and its continuation under Regulation 16 were not legally sustainable. The conclusion is in favour of the appellants.

Issue (ii): Whether the alleged violations of Regulation 1(4) and Regulation 10(a), 10(b), 10(d) and 10(e) justify invocation and continuation of suspension under Regulation 16.

Analysis: Regulation 1(4) prohibits transfer of licence; Regulation 10 sets obligations including obtaining authorization, transacting through authorised employees, advising clients and exercising due diligence. The licensing authority must base suspension on evidential findings showing the broker's role in the alleged violations. The adjudicating order reached conclusions on these alleged violations before completion of an independent inquiry under Regulation 17 and without adequate evidential record establishing the broker's involvement; the show-cause process and inquiry mandated by Regulation 17 were yet to be completed.

Conclusion: The impugned order fails to establish that the alleged violations justified immediate suspension and its continuation. The conclusion is in favour of the appellants.

Final Conclusion: The impugned order continuing suspension of the customs broker's licence is set aside and the appellants are entitled to resume business; the licensing authority is directed to complete inquiry proceedings under Regulation 17 expeditiously.

Ratio Decidendi: Immediate suspension under Regulation 16 of the Customs Brokers Licensing Regulations, 2018 is permissible only in appropriate cases with recorded reasons demonstrating necessity; continuation of suspension requires compliance with the procedural and evidential mandates of Regulation 16 and Regulation 17, including post-decisional hearing and completion of inquiry steps before sustaining suspension.

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