Suspension of Customs Broker licence upheld for compliance with CBLR immediate action requirements; continuation after hearing sustained

Suspension of a customs broker licence was assessed under the Customs Broker Licensing Regulations, 2018 and found to satisfy the two prerequisites for immediate suspension, namely contemplation of an inquiry and suspension occurring before or during such inquiry, so the initial suspension order is valid. Continuation of the suspension after providing a hearing complied with the procedural requirement for post-suspension hearing and was therefore sustained. Administrative instructions requiring recorded reasons for immediate suspension were followed. Findings about the brokers failure of due diligence, mis-declaration and supervisory/vicarious liability for employee acts were accepted, resulting in rejection of the appeal.

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Issues: (i) Whether the suspension order dated 12.06.2025 of the Customs Broker licence of the appellant under Regulation 16(1) of the Customs Broker Licensing Regulations, 2018 is in accordance with the CBLR; (ii) Whether the continuation order dated 01.07.2025 under Regulation 16(2) of CBLR continuing the suspension is in accordance with the CBLR.

Issue (i): Whether the suspension order dated 12.06.2025 of the Customs Broker licence of the appellant under Regulation 16(1) of the Customs Broker Licensing Regulations, 2018 is in accordance with the CBLR.

Analysis: Regulation 16(1) permits suspension of a licence in appropriate cases where an enquiry is pending or contemplated and immediate action is necessary; Regulation 16(1) is to be read alongside Regulation 14 and Regulation 17 which deal with revocation and procedure. The suspension order shows receipt by the authority of two Orders-in-Original (dated 07.02.2024 and 24.04.2024) which were received by the Respondent on 28.04.2025 and 16.05.2025 respectively. The suspension dated 12.06.2025 preceded initiation of an enquiry and the impugned order records that an inquiry under Regulation 17 would follow; the factual findings recorded in the suspension order and subsequent order identify prima facie failures by the broker to obtain authorisations, exercise due diligence, verify importer functioning, supervise employees, and instances of mis-declaration and deliberate suppression. The explanation of "offence report" in Regulation 17 applies to that regulation and does not make receipt of an offence report a precondition for suspension under Regulation 16(1).

Conclusion: The suspension order dated 12.06.2025 is in accordance with Regulation 16(1) of the Customs Broker Licensing Regulations, 2018 and is upheld in favour of the Revenue.

Issue (ii): Whether the continuation order dated 01.07.2025 under Regulation 16(2) of CBLR continuing the suspension is in accordance with the CBLR.

Analysis: Regulation 16(2) requires that the authority grant a hearing within fifteen days of suspension and pass an order revoking or continuing suspension within fifteen days of the hearing. The suspension dated 12.06.2025 was followed by a personal hearing on 19.06.2025 (within 15 days) and the continuation order was passed on 01.07.2025 (within the subsequent 15-day period). The continuation order records reasons for continuation and refers to the contemplated inquiry under Regulation 17; the authoritys findings identify repeated regulatory lapses and prima facie misconduct beyond mere classification disputes, including lack of authorisation, failure to verify importer functioning, mis-declaration, and undermining of investigation, supporting continuation of suspension pending inquiry.

Conclusion: The continuation order dated 01.07.2025 is in accordance with Regulation 16(2) of the Customs Broker Licensing Regulations, 2018 and is upheld in favour of the Revenue.

Final Conclusion: The appellate challenge to the suspension and its continuation is dismissed; the impugned orders suspending and continuing suspension of the Customs Broker licence are upheld, and the appeal is rejected.

Ratio Decidendi: Regulation 16 of the Customs Broker Licensing Regulations, 2018 authorises suspension of a customs broker's licence where an enquiry is pending or contemplated and immediate action is necessary; the procedural timings in Regulation 16(2) for hearing and decision were complied with, and the Regulation 17 explanation of "offence report" is confined to revocation proceedings under Regulation 17 and does not preclude suspension under Regulation 16.

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