ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 04.06.2025
CESTAT Mumbai Restores Customs Broker License in IGST Refund Allegation
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai quashed the revocation of the customs broker license of Horizon Cleford Private Limited, holding that the allegations of regulatory violations under the Customs Brokers Licensing Regulations (CBLR), 2018 were unfounded and procedurally flawed.
The tribunalโs verdict brings significant relief to customs brokers facing scrutiny over their clientsโ export transactions, especially where allegations involve overvaluation and misuse of IGST refund schemes.
Background of the Case
Horizon Cleford Pvt. Ltd., a licensed customs broker in Mumbai, had filed three shipping bills in November 2018 for an exporterโM/s Jamilar International Pvt. Ltd., New Delhiโdeclaring exports of USB cables. These were later alleged to be overvalued with the intention of fraudulently claiming ineligible IGST refunds.
Key allegations by the Customs Department:
- Inflated FOB values declared to secure IGST refund of โน13.08 lakh instead of an admissible โน1.68 lakh.
- The exporter was found untraceable at the registered addresses.
- Horizon Cleford was accused of violating Regulations 10(d), 10(e), and 10(n) of CBLR, 2018.
- Based on these findings, the Principal Commissioner of Customs, Mumbai passed an order on 19th July 2024 revoking the CB license, forfeiting the security deposit, and imposing a penalty.
This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
Source: CESTAT Mumbai
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