Secon Logistics wins appeal as Customs Tribunal emphasizes strict adherence to procedural timelines under Customs Broker Licensing Regulations, 2018.
In a significant decision, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) at its Chandigarh Regional Bench has set aside the suspension order against M/s Secon Logistics Pvt. Ltd., restoring its Customs Broker License, which had been suspended by the Commissioner of Customs, Ludhiana. The Tribunal's decision dated December 17, 2025, underscores the necessity for strict adherence to procedural timelines stipulated under the Customs Broker Licensing Regulations (CBLR), 2018.
The case centered around the appellant, M/s Secon Logistics, whose license was suspended following allegations of mis-declaration of imported goods. The customs broker was implicated in a case involving the import of dry dates misdeclared as light melting scrap. The Directorate of Revenue Intelligence (DRI) had seized the goods, and Secon Logistics was accused of violating multiple regulations under CBLR, 2018.
However, the Tribunal focused its judgment on the procedural lapses committed by the customs authorities. It highlighted that the mandatory timelines for suspension and revocation proceedings under Regulation 17(1) of the CBLR, 2018, were not adhered to. The Tribunal reiterated the principle that when a statute prescribes a procedure, it must be followed precisely.
The Tribunal found that the notice for revocation of the customs broker's license was not issued within the required 90 days from the date of the "Offence report," a critical procedural lapse that invalidated the entire suspension proceeding. The Tribunal noted that even amid the COVID-19 pandemic, which extended certain legal timelines, the customs authorities failed to justify the delay adequately.
In delivering the judgment, the Tribunal referred to several precedents from the High Courts, affirming that adherence to statutory timelines is mandatory and that failure to comply renders the proceedings void. The decision emphasized that while the customs broker may have had lapses, the procedural injustice due to the authorities' non-compliance with timelines warranted setting aside the suspension.
The Tribunal also considered the livelihood implications for Secon Logistics and its employees, noting the disproportionate impact of a prolonged suspension without penalty. It directed the restoration of Secon Logistics' license within four weeks, acknowledging the undue hardship faced by the broker due to procedural oversight.
This judgment reinforces the judiciary's stance on procedural integrity and proportionality in administrative actions, ensuring that regulatory bodies adhere to prescribed legal frameworks. The outcome is a reminder to customs authorities of the importance of procedural compliance, even as they address violations within the industry.
Bottom Line:
Customs Broker Licensing Regulations, 2018 - Strict adherence to prescribed timelines is mandatory for suspension and revocation proceedings - Violation of timelines vitiates the proceedings.
Statutory provision(s):- Customs Broker Licensing Regulations, 2018, Regulation 17(1)
