ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 06.06.2025
CESTAT Delhi Clears Customs Broker of βΉ50 Lakh Penalty in Alleged IEC Misuse
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Principal Bench, New Delhi, has set aside penalties imposed on M/s GND Cargo Movers, a licensed customs broker, for alleged violations related to the misuse of an Importer Exporter Code (IEC). The judgment, authored by Justice Dilip Gupta (President) and Ms. Hemambika R. Priya (Technical Member), nullifies the order passed by the Commissioner of Customs (Appeals) on 31 May 2019, upholding the principles of procedural justice and statutory compliance under the Customs Act, 1962.
Case Background
- The customs broker was penalized βΉ50 lakhs under Sections 112 and 114AA of the Customs Act, 1962, for allegedly abetting appellant and others in misusing the IEC of M/s Trip Communications Pvt. Ltd. (TCPL).
- The Department alleged that the broker knowingly facilitated the clearance of goods under a misrepresented IEC, violating Regulations 13(d) and (e) of the Customs House Agents Licensing Regulations, 2004.
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 Delhi
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