Interim suspension of customs house agent licence upheld where authority showed prima facie satisfaction and pending enquiry.

Regulation 21(2) of the Customs House Agents Licensing Regulations, 1984 confers a wide interim power to suspend a licence where immediate action is necessary and an enquiry is pending or contemplated. For such interlocutory action, the order need not set out a full evidentiary discussion, but it must show that the authority applied its mind and reached prima facie satisfaction on the need for suspension. On the facts, the suspension referenced suspected involvement in attempted export of prohibited goods and was supported by an ongoing investigation. The delay between seizure and suspension did not invalidate the order, as it reflected restraint rather than undue haste. The suspension was therefore upheld as consistent with Regulation 21(2).

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Issues: Whether the suspension of the Customs House Agents licence under Regulation 21(2) of the Customs House Agents Licensing Regulations, 1984 was valid, and whether the order was vitiated for want of detailed reasons or absence of an immediate need for action.

Analysis: Regulation 21(2) confers wide discretionary power on the Collector to suspend a licence in appropriate cases where immediate action is necessary and an enquiry is pending or contemplated. In the context of such an interim and interlocutory power, the order need not contain a full discussion of the evidence or a final adjudication of the allegations, but it must disclose that the authority applied its mind and formed a prima facie satisfaction about the need for suspension. The order in question referred to the suspected involvement of the licence-holder in the attempted export of prohibited goods, and the surrounding record showed that investigation had already commenced. The lapse of time between seizure and suspension did not invalidate the action, as it indicated restraint rather than haste and was consistent with a prima facie assessment pending enquiry.

Conclusion: The suspension order was held to be in conformity with Regulation 21(2) and was not liable to be interfered with.

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