Principal Commissioner of Customs General vs Suswashis Clearing and Forwarding Agency — Bombay HC (2026) — LawSathi Research

Principal Commissioner of Customs General vs Suswashis Clearing and Forwarding Agency — Bombay HC (2026) — LawSathi Research

What the court decided

AI extract

Outcome

None to the appellant (Revenue Authority); the dismissal leaves undisturbed the relief obtained by the Respondent Customs Broker under the CESTAT order dated 16th February 2024 (set-aside of the licence revocation, security forfeiture and penalty).

Issue for consideration

Question A: Whether CESTAT was correct in holding that, once the licence had been revoked pursuant to the OIO dated 31.05.2021, the Show Cause Notice dated 27.04.2022 could not have been issued for violation of Regulation 10(a), 10(d) and 10(n) of the CBLR 2018, there being no concept of deemed revocation of licence under CBLR. +3 more

Ratio / Principle

Question C does not arise at all out of the impugned order because CESTAT gave no finding to the effect that the punishment of revocation of licence was harsh and disproportionate; hence that question is not entertained.

Key takeaways

Questions 'A' and 'B' projected by the Revenue do not arise in the facts of the present case: there is, undisputedly, a clear violation of Regulation 17(4) of the CBLR, 2018, rendering those questions wholly irrelevant to the disposal of the appeal.ratio¶¶26
Since no opportunity to cross-examine Shri Rajesh Dilip Gihar — whose statement the Show Cause Notice specifically relied upon to frame the charges — was granted to the Customs Broker, there was a clear breach of Regulation 17(4) which vitiated the entire proceedings; the Court endorses CESTAT's conclusion as correct.ratio¶¶30

Detailed headnote1 paragraphs

Bombay High Court (B. P. Colabawalla & Firdosh P. Pooniwalla, JJ.; 11 June 2026) dismissed Customs Appeal No. 46 of 2024 filed by the Principal Commissioner of Customs (General) against CESTAT's order dated 16.02.2024, which had allowed the appeal of customs broker Suswashis Clearing and Forwarding Agency and set aside the Principal Commissioner's order deeming its CB licence revoked, forfeiting the security deposit for the second time and imposing penalty. Holdings: (i) the projected question that the revocation was 'much harsh and disproportionate' does not arise — CESTAT made no such finding; (ii) the questions whether a fresh Show Cause Notice (27.04.2022) could issue after the OIO revocation of 31.05.2021, and on the broker's non-appearance at four personal hearings, are irrelevant, because Regulation 17(4) of CBLR 2018 was plainly violated — although by letter dated 30.06.2022 the broker had asked to cross-examine Shri Rajesh Dilip Gihar and Shri Mohammad Yusuf, and the SCN specifically relied on Gihar's statement to frame the charges, no cross-examination of Gihar was permitted, a clear breach of Regulation 17(4) which vitiated the entire proceedings, so CESTAT was fully justified in allowing the appeal (its reliance on Shasta Freight Services, Telangana HC, whose SLP was dismissed, noted); (iii) the deemed-revocation / post-revocation-SCN question is expressly kept open.

MAMTA AMAR KALE Digitally signed byMAMTA AMAR KALEDate: 2026.06.1519:13:39 +0530

4-cuapp-46-2024.doc

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION

CUSTOMS APPEAL NO. 46 OF 2024

Principal Commissioner of Customs (General) .. Appellant

Versus

Suswashis Clearing and Forwarding Agency .. Respondent

Adv. Subir Kumar a/w Mr. Satyaprakash Sharma a/w Ms. Ashita Aggarwal, Ms. Vaishnavi Pawar, for the Appellant.

CORAM: B. P. COLABAWALLA &

FIRDOSH P. POONIWALLA, JJ. DATE: JUNE 11, 2026

P. C.

The above Appeal has been filed by the Revenue Authority challenging the order passed by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) dated 16^th February 2024. By the impugned order, CESTAT allowed the Appeal filed by the Respondent before us (the Customs Broker) and set aside the impugned order passed by the learned Principal Commissioner of Customs (General) Mumbai, whereby the Customs Broker License was deemed to be revoked, the security deposit was forfeited for the second time and for imposition of penalty. Apart from

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finding that there was no violation of Regulations 10(a), 10(d) and 10(n), CESTAT found that the order impugned before it was clearly in violation of Regulation 17(4) of the Customs Brokers Licensing Regulations, 2018 (CBLR, 2018).

According to the Revenue, the impugned order of the CESTAT gives rise to the following questions of law:

A. Whether or not Hon’ble CESTAT was correct in holding that once the license has been revoked pursuant to an OIO order dated 31.05.2021, the Show Cause Notice dated 27.04.2022 could not have been issued for the violation of Regulation 10(a), 10(d) and 10(n) of the Customs Brokers Licensing Regulation, 2018 and that there was no concept of deemed revocation of license under CBLR ?

B. Whether or not the CESTAT has failed to appreciate that the Respondent did not appear before Commissioner in spite of personal hearings granted to the Respondent on 14.09.2022, 29.12.2022, 15.02.2023, 15.03.2023 to appear for the same ?

C. CESTAT was correct in law in holding that the punishment of revocation of license is much harsh and disproportionate to the offences committed ?

At the outset, we note that question ‘C’ does not arise at all out of the impugned order because no finding has been given by the CESTAT to the effect that punishment of revocation of license is harsh and disproportionate

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to the offences committed. Hence, there is no question of entertaining question ‘C’ reproduced above.

As far as questions ‘A’ and ‘B’ are concerned, they clearly do not arise in the facts of the present case because undisputedly, there has been a clear violation of Regulation 17(4) of the CBLR, 2018. Regulation 17(4) clearly stipulates that the Customs Broker shall be entitled to cross examine the persons examined in support of the grounds forming the basis of the proceedings, and where the Deputy Commissioner of Customs or Assistant Commissioner of Customs declines permission to examine any person on the ground that his evidence is not relevant or material, he shall record his reasons in writing for doing so. The Tribunal, in paragraphs 7.4 and 7.5 of the impugned order, has clearly examined the facts and thereafter come to the conclusion that Regulation 17(4) is violated. The Tribunal took note of the fact that after the Show Cause Notice issued on 27^th April 2022, the Customs Broker in its written submission tendered vide letter dated 30^th June 2022 to the Inquiry Officer had requested for permitting them to cross examine the witnesses Shri Rajesh Dilip Gihar, a proprietor of the export firm M/s. G. R. Creation and Shri Mohammad Yusuf, Manager of M/s Manjunatha Cargo Pvt. Ltd. Incidentally, in the Show Cause Notice issued, the statement of Shri Rajesh Dilip Gihar was specifically relied upon to frame

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the charges against the Customs Broker. Since no opportunity to cross examine Mr Rajesh Dilip Gihar was granted to the Customs Broker (the Respondent herein), the CESTAT came to the conclusion, and in our view correctly so, that there was a clear breach of Regulation 17(4) which vitiated the entire proceedings.

In coming to this conclusion, the CESTAT also relied upon the decision of the Telangana High Court in the case of Shasta Freight Services Pvt. Ltd. Vs. Principal Commissioner of Customs, Hyderabad 2019 (368) E.L.T. 41 (Telangana). Incidentally, a challenge to this Judgement of the Telangana High Court before Hon’ble Supreme Court was also unsuccessful as the SLP filed therefrom was dismissed.

After going through the order of the CESTAT, we find that on the ground of violation of Regulation 17(4) itself, the CESTAT was fully justified in allowing the Appeal filed by the Customs Broker. Hence, the question whether the CESTAT was correct in holding that once the license has been revoked, pursuant to an Order-in-Original dated 31^st May 2021, the Show Cause Notice dated 27^th April 2022 could not have been issued, or whether CESTAT has failed to appreciate that the Customs Broker did not

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appear before the Commissioner inspite of personal hearings granted to the Customs Broker on several dates, is wholly irrelevant. In other words, question ‘A’ and ‘B’ projected by the Revenue are really not required to be considered in this case as Regulation 17(4) of CBLR, 2018 was violated.

We make it clear that question ‘A’ as projected by the Revenue is expressly kept open to be agitated in an appropriate case.

With these observations, we hold that there is no merit in the above appeal. It is accordingly dismissed. However, there shall be no order as to costs.

This order will be digitally signed by the Private Secretary/ Personal Assistant of this Court. All concerned will act on production by fax or email of a digitally signed copy of this order.

[FIRDOSH P. POONIWALLA, J.] [B. P. COLABAWALLA, J.]

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All orders in this case

51 orders share this CNR

13 Nov 2024Order 1 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
27 Nov 2024Order 2 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
4 Dec 2024Order 3 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
11 Dec 2024Order 4 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
18 Dec 2024Order 5 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
15 Jan 2025Order 6 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
22 Jan 2025Order 7 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
29 Jan 2025Order 8 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
5 Feb 2025Order 9 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
26 Feb 2025Order 10 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
5 Mar 2025Order 11 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
12 Mar 2025Order 12 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
19 Mar 2025Order 13 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
26 Mar 2025Order 14 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
2 Apr 2025Order 15 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
9 Apr 2025Order 16 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
16 Apr 2025Order 17 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
23 Apr 2025Order 18 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
23 Apr 2025Order 19 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
30 Apr 2025Order 20 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
7 May 2025Order 21 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
11 Jun 2025Order 22 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
25 Jun 2025Order 23 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
2 Jul 2025Order 24 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
23 Jul 2025Order 25 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
30 Jul 2025Order 26 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
3 Sept 2025Order 27 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
10 Sept 2025Order 28 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
17 Sept 2025Order 29 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
24 Sept 2025Order 30 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
1 Oct 2025Order 31 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
15 Oct 2025Order 32 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
12 Nov 2025Order 33 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
26 Nov 2025Order 34 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
3 Dec 2025Order 35 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
10 Dec 2025Order 36 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
17 Dec 2025Order 37 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
24 Dec 2025Order 38 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
7 Jan 2026Order 39 — this page · B.p. Colabawalla Firdosh Phiroze Pooniwalla
14 Jan 2026Order 40 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
21 Jan 2026Order 41 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
28 Jan 2026Order 42 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
11 Feb 2026Order 43 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
25 Feb 2026Order 44 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
4 Mar 2026Order 45 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
11 Mar 2026Order 46 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
18 Mar 2026Order 47 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
25 Mar 2026Order 48 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
1 Apr 2026Order 49 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
15 Apr 2026Order 50 · B.p. Colabawalla Firdosh Phiroze Pooniwalla
11 Jun 2026Order 51 · B.p. Colabawalla Firdosh Phiroze Pooniwalla