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TMI Blog2003 (11) TMI 158X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 2-2-2001. This order is reproduced below :- "Whereas, it has come to the notice that Shri V.K. Singh, holder of CHA Licence No. 2/89 located at 1-10-38/1/8, Near Air Cargo Complex, Begumpet, Hyderabad has been arrested by the officers of Directorate of Revenue Intelligence on the allegation that he has committed gross misconduct by indulging in and abetting in the fraudulent clearances of (1) chalk powder with a value not exceeding Rs. 30,000/- by clearing the goods as Naproxen (an expensive bulk drug) with a declared FOB value of Rs. 6 crores and involving DEPB entitlement of Rs. 1.2 crore on behalf of M/s. Sri Vishnu Merchants and M/s. Pasupathi Traders; and (2) substandard and cheap garments of no commercial value by declaring ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... being separately initiated." 4. Shri B.V. Kumar appearing for the appellant Shri V.K. Singh submitted that in respect of suspension of CHA licence no enquiry has been conducted till date nor the appellant has been granted an opportunity to defend himself though nearly three years have been lapsed since the CHA licence has been suspended. He contended that the learned Commissioner has not followed the procedure prescribed under Regulations 21 and 23 of the CHA Licensing Regulations or issued a notice under the said Regulation 23(i) as mandated. He contended that the suspension order is liable to be revoked as there was no indication in the order justifying the immediate action of suspension under Regulation 21(2), relying upon the decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by Regulation 21(2) but is required to cater to a situation warranting immediate action. In support of his contention, he referred to the decision in the case of N.C. Singha Sons v. UOI reported in 1998 (104) E.L.T. 11 (Cal.). Particularly he drew our attention to Para 5 of the said decision which is as under : "A perusal of the order dated 9th June, 1998 passed by the respondent No. 2 clearly suggests that the power under Regulation 21(2) was resorted to apparently without spelling out in the impugned order as to whether any immediate action was necessary so as to suspend the licence of the appellants with immediate effect. Undoubtedly a plain reading of the Regulation 21(2) clearly stipulates that the requirement to take immediate a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut on record for suspending the licence in Appeal No. C/318/2002, but conceded such material is not forthcoming in Appeal No. C/152/2003. She said that an opportunity of hearing should be given before canceling the licence i.e. subsequent to the suspension of licence and Tribunal may direct the concerned authorities to give personal hearing to the appellants and to pass an order under sub-section (2) of Regulation 21 of CHA Regulations on the question whether the suspension of the licence should continue or not, as it was held by the Larger Bench in the case Freightwings Travels Ltd. (supra). 7. We have carefully considered the matter. It was emphatically argued by both the Counsel that the suspension under Regulation 21(2) of CHA Licen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tself should disclose that the matter could not brook any delay and that the matter was so urgent as to warrant action under Regulation 21(2) and the ground of immediate action also spelt out in the order itself. On applying the above guidelines it is observed that in the present cases, no reason is forthcoming for the necessity of immediate action for suspension of the licence apart from the fact that there is no indication in the order of the Commissioner as to on what grounds, the suspension has been ordered in Appeal No. C/152/2003. We find that the impugned orders are completely arbitrary and not in accordance with the provisions of Regulation 21(2) of the CHA Licence or rules and the norms of justice. In view of these discrepancies, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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