1999 (4) TMI 87 - HC - Customs

Summary

Issues Involved:
1. Legality of the suspension of the Customs House Agent's Licence.
2. Requirement of immediate action and recording of reasons for suspension.
3. Availability and necessity of alternative remedies.
4. Judicial review of administrative actions.

Summary:

1. Legality of the suspension of the Customs House Agent's Licence:
The 1st respondent, holding a Customs House Agents Licence, was suspended via a memo dated 10-8-1998. The learned trial Judge found that some charges had been dropped and directed that unless an enquiry is initiated within seven days, the suspension would be quashed. The appellate court reviewed the relevant provisions and upheld the necessity of recording reasons for such suspension.

2. Requirement of immediate action and recording of reasons for suspension:
The court emphasized that Regulation 21(2) requires the recording of reasons for the immediate suspension of a licence. It was noted that the order dated 10-8-1998 contained serious charges against the respondent, including involvement in import scams and evasion of customs duty. The court found that the order did not suffer from non-application of mind and had sufficient reasons for suspension.

3. Availability and necessity of alternative remedies:
The appellate court acknowledged that an appeal to the Customs and Central Excise Gold (Control) Appellate Tribunal was a viable alternative remedy. However, given that the writ petition had been heard on merits and considering the decision in Hirday Narain, L. v. Income-Tax Officer, Bareilly, the court deemed it inappropriate to insist on the alternative remedy at this stage.

4. Judicial review of administrative actions:
The court reiterated that judicial review is limited to ensuring that administrative orders are not irrational or suffer from Wednesbury unreasonableness. The court found that the order of suspension was justified and did not warrant interference. However, it directed that the enquiry must be initiated within one month, failing which the suspension would stand revoked.

Conclusion:
The appeal was disposed of with directions to initiate the enquiry within one month, and no costs were awarded.