CESTAT Finds No Evidence of F-Card Misuse After CHA Suspension; Sets Aside Revocation and Penalty [Read Order]
The tribunal noted that action under CBLR, 2018 could not be sustained solely against the F-Card holder when the Customs Broker was not part of the proceedings.
![CESTAT Finds No Evidence of F-Card Misuse After CHA Suspension; Sets Aside Revocation and Penalty [Read Order]](https://images.taxscan.in/h-upload/2025/06/25/2054281-cestat-evidence-of-f-card-misuse-cha-suspension-aside-revocation-penalty-taxscan.webp "CESTAT Finds No Evidence of F-Card Misuse After CHA Suspension; Sets Aside Revocation and Penalty [Read Order]")
The Kolkata Bench of Customs,Excise and Service Tax Appellate Tribunal ( CESTAT ) set aside the revocation of the assessee’s F-Card and the ₹50,000 penalty, holding that there was no evidence of misuse after the suspension of the Customs House Agent (CHA) firm’s licence. Shyamal Kumar Ghosh,appellant-assessee,was an F-Card holder working with the CHA firm M/s. S.K. Acharya in...
The Kolkata Bench of Customs,Excise and Service Tax Appellate Tribunal ( CESTAT ) set aside the revocation of the assessee’s F-Card and the ₹50,000 penalty, holding that there was no evidence of misuse after the suspension of the Customs House Agent (CHA) firm’s licence.
Shyamal Kumar Ghosh,appellant-assessee,was an F-Card holder working with the CHA firm M/s. S.K. Acharya in Kolkata since 2007. The firm handled customs clearance for importers like M/s. New Heera Sales Corporation and M/s. Ashok Trading Company. Its CHA licence, valid till November 2026, was suspended in June 2022 due to past irregularities, which also rendered the appellant’s F-Card non-functional.
After the suspension, the assessee coordinated with another Custom Broker, M/s. P.R. Logistics, and acted as a link between the broker and the importers. During an investigation, Customs officials found discrepancies in imports cleared through M/s. P.R. Logistics and noted the appellant’s limited role in sharing duty details and documents.
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Based on an offence report, the Commissioner of Customs suspended the assessee’s F-Card on 18.09.2023, alleging violation of multiple Customs Brokers Licensing Regulations (CBLR), 2018 regulations. The suspension was later confirmed, followed by a show cause notice and an inquiry.
On 27.03.2024, the Principal Commissioner revoked the appellant’s F-Card and imposed a penalty of ₹50,000. The assessee challenged this order by filing the present appeal.
After that, the assessee started working independently based on his experience. He helped with customs clearance by sharing duty details and payment links but did so in his personal capacity, not as a valid F-Card holder.
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The appellate tribunal observed that the imports in question were handled by M/s. P.R. Logistics, and the assessee played only a minor role. The allegations against him were based only on a statement from an importer, and no solid evidence was presented.
It also held that the rules under which the F-Card was revoked could only apply if charges were made against both the Customs Broker and the F-Card holder. In this case, the Customs Broker was not involved in the proceedings.
Since there was no clear proof of any violation, the tribunal held that the revocation of the F-Card and the penalty of ₹50,000 were not justified and set both aside.
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