( l) Subject to such restrict ions as the State Government may prescribe, the authority granting any l icence, permit or pass under this Act may canncel or suspend i t —
(a) if any duty or fee payable by the holder thereof he not duty paid; or
(b) in the event of any breach by the holder thereof or by an‟ of his servants, or by any one action on his behalf with his express or implied permission, of any of the terms or conditions thereof; or
(c) if the holder thereof, or any of his servants, or any one action on his behalf with his express or implied permission, is convicted of any offence under this Act or any other law for the t ime being in force relating to revenue, or of any offence (under the Dangerous Drugs Act, 1930 (11 of 1930, or under the Indian Merchandise Marks Act, 1889 (1V of 1889), or under any section which has been introduced into the Indian Penal Code (XLV of 1860), Section 3 of that Act; or
(d) if the holder thereof is convicted of any cognizable and non -bailable offence; or
(e) if the holder thereof is punished fur any‟ offence referred to in clause
(8) of Section 167 of the Sea Customs Act, 1878 (Viii of 1878); or
(f) where a l icence, permit or pass been granted on the application of the holder of any lease granted under Section 18, on the requisit ion in writ ing of such lessee; or
(g) if the conditions of the l icence, permit or pass provide for such cancellation or suspension at will .
(1-A) Before making an order cancel l ing or suspending a l icence permit or pass under sub-sect ion (1), the authority aforesaid shall record in writ ing the reasons for the proposed action, furnish to the holder thereof a brief statement of the same and afford him a reasonable opportunity of being heard.
(2) Where a l icence, permit or pass held by any person is cancelled under clause (a), clause (b), clause (c) or clause (e) of sub -section (1) , the authority aforesaid may cancel any other l icence, permit or pass granted to such person under this Act or under any other law for t he t ime being in force relating to excise revenue, or under the Opium Act, 1878 (1 of 1878).
(3) The holder of a l icence, permit or pass shall not be enti t led to any compensation for i ts cancellation or suspension nor to the refund of any fee paid or deposit made in respect thereof.
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(4) Where a l icence is cancelled or suspended under clause (a), clause
(b), clause (c) or clause (e) of sub -section (1),—
(a) the fee payable for the balance of the period for which such l icence would have been current but fo r such cancellation or suspension, may be recovered from the ex -licensee as excise -revenue;
(b) the Collector may take the gran t under management or resell i t at the risk and loss of the ex -licensee, but an‟ profit realised by such management or resale which is not is excess of the amount recovered under clause (a) for such period shall be paid to the ex -licensee.