Karan Logistics Vs Commissioner of Customs (CESTAT Chandigarh)
The appeal concerns the suspension of the Customs Broker Licence of M/s Karan Logistics, issued under the Customs Broker Licensing Regulations (CBLR), 2018. The suspension was confirmed through an order dated 29.07.2024 by the Commissioner of Customs, Amritsar. The proceedings arose from an investigation by the SIIB, ICD Tughlakabad, which found that an exporter, M/s Krystfab Enterprises, had fraudulently availed excess RoSL rebate of ₹11,38,921/-. The shipping bills for the exports were filed by the appellant. Attempts to contact the exporter failed, letters were returned undelivered, and the exporter withdrew all funds from its bank account. Notices sent to both the exporter and the appellant allegedly went unanswered. Based on these events, the Commissioner of Customs, Airport & General, New Delhi, prohibited the appellant from working in Delhi customs stations under Regulation 15 of CBLR, 2018. The licensing authority at Amritsar then initiated suspension proceedings under Regulation 16(1) and confirmed continuation of suspension through the impugned order.
The appellant contended that the licence had repeatedly been suspended or revoked since 2018, with such actions previously set aside by the Tribunal. It was argued that the Customs Broker cannot be held responsible for the exporter’s conduct after issuance of the Let Export Order and cannot be required to conduct background checks beyond document-based verification. The appellant relied on earlier orders in its favour and judicial precedents to argue that the obligations under CBLR cannot be overstretched. It was emphasized that the licence had effectively remained non-operational for seven years, severely affecting livelihood.
