CESTAT Overturns Customs Broker License Revocation: Key Takeaways
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Principal Bench, New Delhi, has overturned the decision to revoke a Customs Broker license, clarifying that mis-declaration of goods by an exporter does not, on its own, demonstrate a breach of the Customs Broker Licensing Regulations (CBLR), 2018.
A bench consisting of Justice Dilip Gupta (President) and P.V. Subba Rao (Member – Technical) ruled in favor of the appellant, M/s Silver Line Global Freight Pvt. Ltd., and nullified the order by the Commissioner of Customs that revoked the broker's license, forfeited the security deposit, and imposed a penalty.
This case originated from export consignments filed by the broker on behalf of M/s Felicity International, wherein Customs had alleged misclassification of the goods and considerable over-valuation. Following this, the customs department claimed violations of Regulations 10(a), 10(d), 10(e), and 10(n) of the CBLR, 2018.
Regarding Regulation 10(a), CESTAT noted that the absence of an authorization during the investigation does not imply it was never obtained, especially as the broker provided an authorization issued prior to the submission of the shipping bills.
Concerning Regulation 10(d), the Tribunal observed that a Customs Broker's role is limited to filing documents and does not include assessing the value or examining goods. Thus, wrongdoing on the part of the exporter alone cannot indicate that the broker failed to ensure legal compliance.
The Tribunal also stated that Regulation 10(e) pertains only to situations where incorrect information is given by the broker to the client, which was not proven in this case.
As for Regulation 10(n), the Bench clarified that a physical inspection of an exporter's premises is unnecessary; compliance can be verified through valid government-issued documents like the Importer Exporter Code (IEC) and GST registration.
Given these findings, the Bench annulled the revocation of the broker's license and ordered its reinstatement.
Case Title: M/s Silver Line Global Freight Pvt. Ltd. v. Commissioner of Customs (Airport & General), New Delhi
Case No.: Customs Appeal No. 51371 of 2025
Representation for Appellant/Assessee: Shri Prashant V. Kubal
Representation for Respondent: Shri Girijesh Kumar
