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2015 (1) TMI 1279 - HC - CustomsCHA - Imposition of prohibition under regulation 23 - prohibited from operating in three land Customs stations on the basis of some perceived irregularity committed several years back - Violation of principles of natural justice - Licence suspended and thereafter revoked i.e. temporary revokation - Held that:- the scheme of the said Regulations of 2013 is such that the authority to impose prohibition under Regulation 23 thereof must be regarded as an extraordinary power which is to be sparingly used. Ideally, if a broker who has been granted a licence is found to have acted in derogation of the conditions of the grant, regular proceedings for revocation of the licence should ensue. A broker’s licence may be prohibited in respect of a particular Customs station or a group of stations when it is perceived to be in the interest of revenue so to do; but Regulation 23 cannot be resorted to on a permanent basis without the procedure applicable for the revocation of a licence being adhered to. Even when a broker is handed down an order of prohibition under Regulation 23 of the said Regulations, he must be informed of the reasons therefor. The extraordinary nature of the power conferred by Regulation 23 has to be retained, but a balance has to be struck by providing for the reasons therefor to be immediately disclosed, may not be by the same document but by another. Since an order of prohibition amounts to the revocation of the licence limited to the customs stations specified by the order, such order cannot be for an indefinite period. Quite apart from the fact that reasons should be furnished for prohibiting a licencee from a Customs station even temporarily, if the intention is to debar him altogether from the relevant stations, the procedure for revocation or alteration of the conditions of the grant has to be adopted. Therefore, the order of prohibition is set aside. - Decided in favour of petitioner
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