Legal principle

Immediate suspension of a CFS/CCSP approval under Regulation 11 of HCCAR, 2009 is only a temporary measure and cannot be continued beyond a reasonable period (and beyond the 15-day limit indicated in Regulation 7(2)) unless substantiated by an inquiry report obtained under Regulation 12.

Court decision

The Tribunal set aside the order dated 05.05.2026 on the ground that suspension had been continued beyond a reasonable period without substantiated grounds for invoking immediate suspension under Regulation 11 of HCCAR, 2009, and allowed the appeal in favour of the appellant, while making clear the Commissioner remains free to initiate a regular inquiry under Regulation 12 and take any action under the HCCAR. The appeal against the earlier suspension order dated 13.04.2026 was dismissed as infructuous, having merged with the order dated 05.05.2026.

Facts

M/s International Cargo Terminal Pvt Ltd (ICTPL/Globicon CFS), a custodian under Sections 45(1) and 141(2) of the Customs Act, 1962 and an approved Customs Cargo Service Provider (CCSP) at Nhava Sheva, was implicated after DRI found that containers declared as 'CMS Granules', 'Gypsum Plaster' and 'household goods' actually contained restricted Chinese-origin 'Fireworks/Firecrackers'. On 11.04.2026, despite DRI's hold intimation, cargo from container TGHU6099161 was being unauthorisedly removed and was found 90% offloaded and stuffed into a truck, and was seized. Alleged CFS vulnerabilities included CCTV blind spots, unauthorised seal breaking, compromised perimeter security and fraudulent recording of scanning. The Commissioner of Customs (General), JNCH, invoking Regulations 5(1)(n) and 6(1)(b), (f), (g), (i) and (q) of HCCAR, 2009, suspended the CCSP approval immediately by order dated 13.04.2026, and after a Tribunal-directed post-decisional hearing confirmed it by order dated 05.05.2026, which ICTPL challenged before the CESTAT.

Key provisions

• Regulation 6, Handling of Cargo in Customs Areas Regulations, 2009 — Responsibilities of Customs Cargo Service provider
• Regulation 11(2), Handling of Cargo in Customs Areas Regulations, 2009 — Suspension or revocation of approval for appointment of a Customs Cargo Service provider
• Regulation 12, Handling of Cargo in Customs Areas Regulations, 2009 — Procedure for suspension or revocation of approval and imposition of penalty
• Regulation 5, Handling of Cargo in Customs Areas Regulations, 2009 — Conditions to be fulfilled by Customs Cargo Service provider
• Section 45, Customs Act, 1962 — Restrictions on custody and removal of imported goods
• Section 141(2), Customs Act, 1962 — Conveyances and goods in a customs area subject to control of officers of customs
• Regulation 10, Handling of Cargo in Customs Areas Regulations, 2009 — Approval of appointment of a Customs Cargo Service provider and review thereof