ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 29.08.2025
CESTAT Kolkata Overturns Penalty on Customs Broker
This Article has been written by Shri Ravi Shekhar Jha, Advocate based in New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
In a significant judgment, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Kolkata, has delivered justice to M/s. β Daga Shipping Agents Pvt. β Ltd., a Customs Broker, by setting aside the penalty of Rs. β 3,00,000/- imposed under Sections 114 and 114AA of the Customs Act, 1962. β This decision marks a crucial moment for Customs Brokers across the country, emphasizing the importance of due diligence and bona fide actions in their professional duties.
Background of the Case
The case revolved around the export of 37,500 capacitors by M/s Poonam Export, facilitated by M/s. β Daga Shipping Agents Pvt. β Ltd. The consignment was detained by the Special Investigation Branch (SIB) on allegations of overvaluation. β Subsequently, summons issued to the exporter revealed discrepancies in the address provided, leading to a Show Cause Notice against the Customs Broker for allegedly failing to verify the exporterβs credentials adequately. β
Despite the appellant providing all necessary documents, including KYC, Aadhaar, PAN, IT returns, GST certificates, and bank letters, the Revenue alleged non-compliance with Regulation 10 of the Customs Brokers Licensing Regulations, 2018. β This resulted in the imposition of a penalty of Rs. β 3,00,000/- under Sections 114 and 114AA of the Customs Act, 1962.
Source: CESTAT Kolkata
Handy Download:
Write to us at office@aadrikaalaw.com
Tel: +91-11-4999 2707 I +91-9999005379
Leave a Reply