Vagueness of SCN in Customs Broker Licence Revocation: Delhi HC sets aside CESTAT order [Read Order]
The Court remanded the matter to CESTAT for a proper decision and directed it to conclude the proceedings by 15th December 2025, while the assessee’s licence remained suspended.
show - cause - notice - Taxscan
show - cause - notice - Taxscan
The High Court of Delhi, observed that the Show Cause Notice (SCN) in the Customs Broker Licence revocation case was vague and set aside the Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ) order, noting that the tribunal had not examined the merits of the case.
The Revenue-appellant filed an appeal under Section 130G of the Customs Act, 1962, against the final order dated 6th August 2024 passed by the CESTAT in Customs Appeal No. 50306/2024.
CESTAT, through the impugned order, set aside the Order-in-Original dated 29th January 2024 passed by the Office of the Commissioner of Customs (Airport and General).
While passing the order, CESTAT observed that the Show Cause Notice dated 9th August 2023 was vague and did not clearly state the alleged violations of regulations by Primus Logistics Pvt Ltd., respondent-assessee.
Justice Prathiba M Singh and Justice Shail Jain examined the Order-in-Original (OIO) and the SCN. The assessee’s Customs Broker License had been revoked, and a penalty imposed via OIO dated 29th January, 2024. The OIO directed the Respondent to surrender the license and related cards, forfeited the security deposit, and imposed a penalty of Rs. 50,000 under the Customs Brokers Licensing Regulations, 2018.
The High Court noted that the CESTAT had set aside the OIO without discussing the facts or examining the merits. The CESTAT concluded that the SCN dated 9th August, 2023, was vague and did not clearly state the alleged violations under regulations 10(a), 10(d), 10(e), and 10(n). It relied on the investigation report and the enquiry officer’s report while largely ignoring the Respondent’s submissions.
The Court observed that, although the CESTAT found the SCN vague, it did not consider the detailed nature of the SCN and OIO, and allowed the appeals based on general observations.
After hearing the counsels and reviewing the records, the bench held that the CESTAT order could not be sustained as it failed to decide the matter on merits. The Court set aside the CESTAT order and remanded the matter to CESTAT for a proper decision.
The CESTAT was directed to conclude the proceedings by 15th December, 2025, keeping in mind that the Respondent’s license remained suspended while it had several employees. The appeal was disposed of, and pending applications were also closed.
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