ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 30.08.2025
CESTAT Bangalore Clarifies that physical verification of the exporterβs premises is not mandatoryβ β β β β
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 ruling, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Bangalore, has set aside a penalty of Rs. β 50,000 imposed on M/s. β Chakiat Agencies, a Customs Broker, under Regulation 18 of the Customs Broker Licensing Regulation (CBLR), 2013. β This decision, delivered on August 28, 2025, highlights the importance of procedural compliance and the interpretation of regulatory requirements in the customs brokerage industry.
Background of the Case
M/s. Chakiat Agencies, a Customs Broker licensed by the Custom House, Chennai, was issued a show-cause notice alleging non-compliance with Regulations 11(a), 11(n), and 17(9) of CBLR, 2013. β The allegations stemmed from their handling of shipping bills for M/s. β Logo Trading through ICD, Bangalore. β The primary contention was that the broker failed to physically verify the existence of the exporter at the declared premises, which was deemed a violation of Regulation 11(n). β Consequently, the Commissioner of Customs, Cochin, imposed a penalty of Rs. β 50,000 under Regulation 18 of CBLR, 2013.
Source: CESTAT Bangalore
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