Section 67H in The Drugs and Cosmetics Rules, 1945
67H. Cancellation and suspension of licenses.
(1)The licensing authority may, after giving the licensee an opportunity to show cause why such an order should not be passed, by an order in writing stating the reasons therefor, cancel a license issued under this Part or suspend it for such period as he thinks fit, if in his opinion, the licensee has failed to comply with any of the conditions of the license or with any provisions of the Act or rules made thereunder:[Provided that, where such failure or contravention is the consequence of an act or omission on the part of an agent or employee, the license shall not be canceled or suspended if the licensee proves to the satisfaction of the licensing authority-(a)that the act or omission was not instigated or connived at by him or, if the licensee is a firm or company, by a partner of the firm or a director of the company, or(b)that he or his agent or employee had not been guilty of any similar act or omission within twelve months before the date on which the act or omission in question took place, or where his agent or employee had been guilty of any such act or omission, the licensee had not or could not reasonably have had knowledge of that previous act or omission, or(c)if the act or omission was a continuing act or omission, that he had not or could not reasonably have had knowledge of that previous act or omission, or(d)that he had used due diligence to ensure that the conditions of the license or the provisions of the Act or the rules thereunder were observed.](2)[ A licensee whose license has been suspended or canceled may, within three months of the date of the order under sub-rule (1), prefer an appeal against that order to the State Government, which shall decide the same.] [Substituted by G.S.R. 926, dated 24.6.1977 (w.e.f. 16.7.1977).]
