2026-VIL-949-CESTAT-BLR-CU
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CUSTOMS CESTAT Cases

Custom - Customs Broker's Liability, Aiding in Duty Evasion - Whether a CHA can be held liable for penalty under Section 112(b) when the goods were imported against valid advance authorization licences and cleared by proper customs officers, but subsequently diverted to unauthorized premises on the instructions of the importer – HELD - The customs broker, as a customs house agent, is bound to ensure compliance with the conditions of the advance authorization licence and cannot merely claim innocence by attributing the diversion to the importer's instructions. The broker's representative had admitted in his statement that he was aware of the licence conditions restricting delivery to specified factory premises, yet the goods were transported to other locations. The fact that sales tax delivery notes and transportation forms were generated by the broker and handed to the truck driver with knowledge that goods were being diverted for sale clearly established the broker's conscious participation in the illegal diversion - The importer's subsequent admission of diversion and remittance of partial duty further corroborated the fact that the goods were indeed diverted in violation of the Foreign Trade Policy and Customs Notification No. 18/2015. The broker, being a partner in the transportation company that arranged vehicles and received payment directly from the importer, had facilitated the commission of the offence by knowingly arranging transportation to premises other than those mentioned in the advance authorization licence, thereby aiding and abetting duty evasion - the Revenue having clearly established the involvement of the appellant in aiding transportation of the imported goods to the places other than the premises mentioned in the Advance Authorised Licences, hence, the provisions of Section 112(b) of the Customs Act, 1962 are attracted since the goods are liable for confiscation - The penalty imposed is sustained and the appeal is dismissed
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