ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 25.08.2025
CESTAT Chennai Rejected Revenue Appeal and Upholds Penalty on Customs Broker β β β β β β
In a significant ruling, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Chennai, has dismissed the appeal filed by the Revenue against the penalty imposed on M/s. β Allwin Cargo Services, a Customs Broker (CB). β The case revolved around alleged violations of the Customs Brokers Licensing Regulations, 2013 (CBLR, 2013), and the Tribunal’s decision highlights the importance of proportionality in adjudicating penalties under regulatory frameworks. β
Background of the Case
The case originated from an investigation by the Directorate of Revenue Intelligence (DRI), Chennai, which uncovered smuggled cigarettes worth Rs. β 4.13 crore in a consignment declared as “Low Melting Steel Bundle Scrap.” While the live consignment was linked to another Customs Broker, Sameer Logistics Pvt. β Ltd., the investigation revealed that M/s. Allwin Cargo Services had handled past consignments allegedly adopting similar methods of smuggling. β A Show Cause Notice was issued to M/s. β Allwin Cargo Services, alleging violations of CBLR, 2013, including non-verification of Importer Exporter Code (IEC) details and coordination with unauthorized individuals. β The Adjudicating Authority imposed a penalty of Rs. β 50,000 under Regulation 18 of CBLR, 2013, but did not revoke the CB’s license or forfeit the security deposit.
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 Chennai
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