Cryptic crossword clue
In the capacity of hut that has to be knocked down 7

The most common and most likely answer to this crossword clue is the 7 letter word QUASHED

I've seen this crossword clue in The Times
Q
U
A
S
H
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D

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The straight part
We know that "knocked down" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case knocked down = quashed.
The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.
This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.

What does QUASHED mean?

QUASHED verb
  1. To defeat decisively.
  2. To crush or dash to pieces.
  3. To void or suppress (a subpoena, decision, etc.).

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