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        Case ID :

        1993 (3) TMI 231 - AT - Customs

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        Ex parte suspension of a customs agent's licence requires a speaking order showing immediate necessity and reasons for action. Regulation 21(2) allows ex parte suspension of a Custom House Agent's licence where immediate action is necessary and an inquiry is pending or ...
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                          Provisions expressly mentioned in the judgment/order text.

                            Ex parte suspension of a customs agent's licence requires a speaking order showing immediate necessity and reasons for action.

                            Regulation 21(2) allows ex parte suspension of a Custom House Agent's licence where immediate action is necessary and an inquiry is pending or contemplated, so prior hearing is not mandatory. However, the suspension order must be a speaking order that on its face discloses the basis for immediate action and the seriousness of the alleged violation, showing application of mind for judicial scrutiny. An order failing to record those reasons is vulnerable to being set aside, though a fresh order may still be passed in conformity with the Regulation.




                            Issues: Whether the Collector of Customs was empowered to suspend the Custom House Agent's licence under Regulation 21(2) without hearing the agent, and whether the suspension order had to disclose the necessity for immediate action and the seriousness of the alleged violation.

                            Analysis: Regulation 21(2) permits suspension of a Custom House Agent's licence in appropriate cases where immediate action is necessary and an inquiry is pending or contemplated. In such a situation, prior hearing is not mandatory. However, the suspension order must itself indicate the basis for immediate action and the seriousness of the violation so that the order is self-contained and shows application of mind for judicial scrutiny.

                            Conclusion: The suspension order was set aside because it did not satisfy the requirement of a speaking order under Regulation 21(2), though the Collector was left free to pass a fresh order in conformity with the Regulation.

                            Ratio Decidendi: Where a statute permits ex parte suspension on grounds of immediate necessity, the order must on its face disclose the factual basis for invoking that power and reflect application of mind.


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                            ActsIncome Tax
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