ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 30.06.2025
CESTAT Allahabad- Customs Broker Not Liable for Importerβs Valuation
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Allahabad, vide Final Order No. 70034/2025 dated 09 January 2025, has set aside the penalty imposed on M/s HIM Logistics Pvt. Ltd., a licensed Customs Broker, in a case alleging under-valuation of goods imported by M/s Shiv Shakti Enterprises.
The Tribunal reiterated that a Customs Broker cannot be held liable for valuation disputes where bills of entry are filed strictly based on documents submitted by the importer.
Background of the Case
- HIM Logistics Pvt. Ltd., holding a CHA licence (No. R07/2004), filed Bills of Entry on behalf of M/s Shiv Shakti Enterprises.
- Customs alleged undervaluation, comparing declared value (USD 1.02/sq. meter) with previously accepted value (USD 1.24/sq. meter).
- The importer accepted the enhanced valuation during investigation and paid differential duties, interest, and penalties.
- Penalties of βΉ10,000 and βΉ5,000 under Section 112(a) of the Customs Act, 1962 were imposed on HIM Logistics by the Adjudicating Authority and upheld by the Commissioner (Appeals), CGST, Noida.
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 Allahabad
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