Suspension of Customs Broker Licence Without Valid Grounds: CESTAT Sets Aside Suspension, Restores Licence [Read Order]

The Delhi Bench of Customs,Excise and Service Tax Appellate Tribunal ( CESTAT ) set aside the suspension and ordered restoration of the Customs Broker licence of the assessee, holding that the action lacked valid grounds

Silverline Global Freight Pvt Ltd,appellant-assessee,submitted that the suspension had affected its business and employees. It argued that no reason was given for the immediate suspension and there was no proof of mis-declaration or overvaluation of goods. It also said the order did not mention any specific rule under Customs Broker Licensing Regulations(CBLR), 2018 that was violated.

The assessee stated that the exporter was not fake, had provided KYC documents, approached the GST Department for re-verification, and filed a writ petition for release of goods.It requested that the suspension be cancelled and it be allowed to continue its business.

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The departmental representative said a Show Cause Notice had been issued, an inquiry officer appointed, and a final decision would be taken soon. So, he argued that the suspension should not be revoked at this stage.

The two member bench comprising Justice Dilip Gupta(President) and P.V.Subba Rao(Technical Member) looked into the submissions and records but did not examine the merits of the allegations, as the inquiry report and the Commissioner’s final order were still pending. It only considered whether the suspension confirmation was justified.

The appellate tribunal found that the claim about no reason being given for the immediate suspension was incorrect. The Suspension Order dated 9.1.2025 clearly mentioned that the appellant had violated CBLR, 2018 provisions, and continuing its operations could harm the interest of the department, which required immediate action.

It also noted that the order dated 28.1.2025 only confirmed the earlier suspension. As per the rules, immediate action is assessed at the time of suspension, and confirmation does not require that condition to be reassessed.

The bench looked into the reasons given by the Commissioner for suspending the licence.It noted that the assessee had filed Shipping Bills for M/s. Felicity International. Customs officers found that the goods were mis-declared and later claimed that the exporter did not exist.

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The Commissioner believed that the assessee failed to verify the goods, their value, the existence of the exporter, and the exporter’s credentials, as the GST registration had been cancelled with effect from 7.2.2023.

The appellate tribunal found that Customs Brokers were not responsible for checking or verifying goods. Their job was to file documents based on details given by the exporter. The goods were handled by the ICD custodian and examined by Customs, not by the broker.

On the issue of valuation, the tribunal held that brokers had no role in checking the market or transaction value of goods.

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Regarding the exporter’s existence, the CESTAT noted that the assessee had collected KYC documents like PAN, Aadhaar, IEC, GST registration, and a bank certificate. It also pointed out that the exporter had filed a writ petition in the Delhi High Court, which showed that the firm did exist.

On the GST issue, the tribunal observed that the cancellation took place with effect from 7.2.2023 but was only confirmed in 2024 after a request from Customs. Until then, even the department had treated the exporter as genuine.

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Based on these points, the bench held that the suspension was not justified.

The tribunal decided the suspension of the Customs Broker licence was not correct and cancelled it. It said the ongoing revocation process would continue separately.

The appeal was allowed, the suspension was removed right away, and the licence and any surrendered cards were returned to the appellant.

To Read the full text of the Order CLICK HERE

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