2026-VIL-1719-CESTAT-ALH-CU
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CUSTOMS CESTAT Cases

Customs – Suspension of Customs Broker licence – Regulation 10(d), (e), (m) and (n) of Customs Brokers Licensing Regulations, 2018 – Bills of Entry filed by the Appellant, a Customs Broker, for an importer appeared to involve mis-declaration of classification and value. The officers told the Appellant not to proceed with the Bills of Entry, and the Appellant neither proceeded with them nor issued a NOC to the importer. The Commissioner suspended the Appellant's licence and continued the suspension. The Appellant contended that it had obtained the KYC, IEC, GST and other documents, that there was no evidence of collusion or mens rea, and that its reply and the decisions relied upon were not considered – Whether the suspension of the Customs Broker licence for alleged violation of Regulation 10(d), (e), (m) and (n) is sustainable – HELD – The Commissioner did not record the Appellant's submissions relying on various decisions. He reproduced Regulation 10(d), (e), (m) and (n) and held the Customs Broker guilty in a very cursory manner, without discussing any evidence showing how the provisions were violated. The allegations and findings were of a general nature and were not substantiated. Suspension entails loss of livelihood of the Customs Broker and the dependent employees, and must be done with utmost precaution and for valid reasons supported by evidence. It is enough if the Customs Broker satisfies himself of the genuineness of the importer, which the Appellant did by obtaining statutory documents. He is not expected to physically verify the premises of the importer, and has no role in deciding the transaction value – The impugned order is set aside and the appeal is allowed with consequential relief, if any, as per law - Customs – Suspension of Customs Broker licence – Mandatory timelines under Customs Brokers Licensing Regulations, 2018 – The Appellant's licence was suspended, and the suspension was continued by a subsequent order. More than eight months had elapsed without any show cause notice being issued or the suspension being revoked, contrary to Regulation 17 of the Regulations – Whether the suspension of the licence can continue when the timelines prescribed under the Regulations have not been adhered to – HELD – Courts have consistently held that the timelines prescribed under the Regulations are mandatory, and each timeline is sacrosanct. The Revenue cannot overlook the timelines by citing reasons on merits. The order suspending the licence cannot continue indefinitely, and must yield to the procedure prescribed under the Regulations. Strict timelines have been specified so that the work of the Customs Broker is not suspended indefinitely. It is not prudent for the Revenue to accuse the Customs Broker of violation of the Regulations when it does not itself adhere to them. Where a statute provides for a thing to be done in a particular manner, it has to be done in that manner and in no other manner. The Appellant had also suffered enough due to the suspension, and no penalty was imposed – The impugned order cannot be sustained, it is set aside, and the appeal is allowed with consequential relief, if any, as per law.
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