2026-VIL-1014-CESTAT-MUM-CU
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CUSTOMS CESTAT Cases

Customs - Suspension of Customs Cargo Service Provider (CCSP) License – Appellant is Container Freight Station operating as a Customs Cargo Service Provider was immediately suspended following an incident where smuggled restricted goods (Chinese origin fireworks/firecrackers) were attempted to be removed from the facility - Whether the order continuing indefinite suspension of a Customs Cargo Service Provider's approval, without conducting a detailed inquiry as mandated under Regulation 12 of the Handling of Cargo in Customs Areas Regulations (HCCAR), 2009, and without substantiating the grounds for invoking immediate suspension under Regulation 11(2) of HCCAR, 2009, is legally sustainable – HELD - The Regulation 11(2) of HCCAR, 2009 empowers the licensing authority to suspend approval only in appropriate cases where immediate action is necessary and an inquiry is pending or contemplated, but such suspension must be substantiated by proper factual evidence on record. The regulation requires that before taking a decision on suspension under Regulation 11(2), the licensing authority must establish through documented evidence that such immediate suspension is appropriate and necessary – In the present case, no SCN was issued, no inquiry was contemplated or pending, and no inquiry report was available on record establishing the case for immediate suspension. While preliminary investigation findings by the revenue authority provide allegations, they cannot substitute for the detailed procedure mandated under Regulation 12 - The Regulation 7(2) of HCCAR prescribes suspension of cargo entry only for a temporary period of fifteen days for specific reasons. While investigating agencies may conduct preliminary inquiries, the licensing authority must independently record specific factual findings supported by evidence before invoking the extraordinary power of suspension under Regulation 11(2) - The fact of cooperation by the facility with investigating authorities, submission of documents and CCTV footage, termination of errant employees, and submission of revised operational procedures demonstrate mitigating factors that require consideration within the prescribed inquiry framework - The order continuing indefinite suspension is set aside. However, the Commissioner as licensing authority remains free to initiate regular inquiry proceedings under Regulation 12 of HCCAR, 2009 by issuing a SCN with specific grounds and following the prescribed procedure for determining whether suspension or revocation of approval is warranted – The appeal is allowed
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