Custom House Agent licence suspension under immediate powers fails where delay and no prima facie involvement are shown.

Suspension of a Custom House Agent's licence under Regulation 21(2) was held unsustainable because the Department delayed invoking immediate suspension for several months after the baggage examination, weakening the basis for such drastic action. The record also did not show prima facie conscious involvement of the agent in the alleged smuggling. As the preconditions for immediate suspension were not satisfied, the suspension was revoked, while the Department remained free to continue the pending inquiry on its merits.

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Issues: Whether the suspension of the Custom House Agent's licence was justified under Regulation 21(2) of the Customs House Regulations.

Analysis: The material relied upon showed that the baggage was examined in November 1998, but the licence was not suspended until May 2000. The delay in invoking immediate suspension weakened the case for such drastic action. The record also did not disclose any prima facie conscious involvement of the appellant in the alleged smuggling. In these circumstances, the preconditions for applying the suspension power were not satisfied, though the Department was left free to pursue the pending inquiry independently on the merits.

Conclusion: The suspension was not sustainable under Regulation 21(2) and was revoked in favour of the assessee.

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