Mandatory procedure for CHA licence revocation must be followed before revocation under the licensing regulations.

A CHA licence could not be revoked under Regulation 21(1) of the CHA Licensing Regulations, 1984 without following the mandatory procedure in Regulation 23. The text states that Regulation 23 requires notice of the grounds, an opportunity to reply, enquiry, a report, and consideration of both the report and the licence-holder's submissions before revocation. Regulation 21(2) permits immediate suspension only in extraordinary cases pending enquiry and does not bypass the revocation procedure. The revocation order was therefore unsustainable and was set aside in favour of the assessee.

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Issues: Whether the Commissioner could revoke the CHA licence under Regulation 21(1) of the CHA Licensing Regulations, 1984 without following the procedure prescribed in Regulation 23.

Analysis: Regulation 21(1) authorises suspension or revocation of a CHA licence on specified grounds, but Regulation 23 lays down the mandatory procedure for revocation, including notice of grounds, reply, enquiry, report, and consideration of the report and submissions. Regulation 21(2) permits only immediate suspension in extraordinary cases pending enquiry, and does not create a shortcut for revocation. The revocation power under Regulation 21(1) must therefore be exercised only after compliance with Regulation 23.

Conclusion: The revocation order was unsustainable because the prescribed procedure was not followed and was set aside in favour of the assessee.

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