Merchant & Sons Vs Principal Commissioner of Customs (CESTAT Mumbai)
Material Facts
The appellant, a Customs Broker holding a licence under the Customs Brokers Licensing Regulations (CBLR), 2018, challenged an order dated 07.08.2025 passed by the Principal Commissioner of Customs (General), Mumbai revoking its Customs Broker licence, forfeiting the entire security deposit and imposing a penalty under Regulations 17(7), 14 and 18 of the CBLR, 2018.
The proceedings arose from investigations conducted by the Directorate of Revenue Intelligence (DRI), Mumbai, into alleged overvaluation of export goods and improper availment of export benefits by several exporters. The appellant had handled exports relating to four exporters—M/s Fashion Hub, M/s Ocean International, M/s Haji International and M/s N.S. Inc.—covering 990 shipping bills. Show cause notices issued against these exporters were treated as offence reports for initiating proceedings against the Customs Broker under the CBLR, 2018.
Earlier, separate revocation proceedings had resulted in four independent revocation orders. CESTAT had set aside those orders and remanded the matter, directing the licensing authority either to proceed with one revocation or decide all four cases together. Thereafter, all four cases were adjudicated together, culminating in the impugned order dated 07.08.2025.
Procedural History
The Principal Commissioner concluded that the appellant had violated Regulations 10(a), 10(d), 10(e), 10(f), 10(k), 10(n) and 10(q) of the CBLR, 2018 and revoked the Customs Broker licence, forfeited the security deposit and imposed a penalty. The appellant challenged this order before CESTAT Mumbai.
