CESTAT Quashes Customs Broker Licence Suspension, Holding No Mens Rea or Procedural Lapse Proven

The CESTAT (Chandigarh Bench) quashed the suspension of a customs broker’s licence after concluding that the licensing authority failed to prove mens rea, collusion, or any procedural default under the Customs Broker Licensing Regulations (CBLR). According to the tribunal, repeated suspensions since 2018, without concrete proof of wrongdoing, were “disproportionate” and deprived the broker of livelihood. It placed importance on the fact that no solid evidence of malicious intent or collusion was established, and held that the broker had performed necessary due diligence. The decision is significant for customs intermediaries, reinforcing that punitive regulatory action must be backed by clear evidence of culpability and that administrative powers have limits.