2026-VIL-1075-CESTAT-DEL-CU
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CUSTOMS CESTAT Cases

Customs - Duty of Customs Broker in verifying authenticity of duty credit scrips - Whether a customs broker who utilizes forged duty credit scrips without physical verification and without ascertaining authenticity from the licensing authority's records can be held liable for penalty under section 114 AA of the Customs Act, 1962, even in the absence of direct knowledge or intention to defraud – HELD - The regulations governing Customs brokers impose a mandatory duty upon them to exercise due diligence and verify the authenticity of documents before using them for customs clearance. The notification dated 11.09.2009 mandates that duty credit scrips must be produced before the proper officer at the time of clearance for debit of duties. A customs broker occupies an important position as a link between customs authorities and importers, and considerable trust is reposed in them by both the government and trade. Any contravention of statutory obligations, even without intent, is sufficient to invite punishment as prescribed in the customs broker licensing regulations. In the present case, the broker's failure to obtain and verify physical copies of the scrips, combined with the failure to confirm the particulars from the licensing authority's website, constitutes negligence in discharge of statutory duty. Such negligence reflects an element of knowledge and conscious facilitation of forged documents, thereby invoking the penal provision. The conscious failure to exercise reasonable diligence required of a prudent customs broker, despite receiving scrips without physical documentation, amounts to violation of statutory obligations sufficient to sustain the penalty - The order imposing penalty is upheld and the appeal is dismissed
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