2026-VIL-1391-CESTAT-MUM-CU
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CUSTOMS CESTAT Cases

Customs – Customs Broker License Revocation – Violation of Regulations 10(d) and 10(e) of CBLR, 2018 – Appellant Customs Broker holding regular license and customs pass filed B/E for import of goods declared as Yellow Peas under HS Code 0713 1010 with concessional duty – DRI investigation found goods were actually Green Peas which are restricted for import under DGFT Notification dated 18.12.2019 and permitted only through Kolkata port with Minimum Import Price of Rs.200 per Kg CIF – Department initiated action against CB alleging violation of Regulation 10(d) for abetting and colluding with importer to evade DGFT restrictions and of Regulation 10(e) for failing to exercise due diligence – Commissioner of Customs revoked CB license and ordered forfeiture of security deposit along with penalty – HELD – The Appellant-CB filed Bills of Entry as per documents given by importers and approved by them, which included invoices and bill of lading describing goods as Yellow Peas under HS Code 0713 1010. CB cannot be held liable for misdeclaration when filing BOE based on documents provided and approved by importer - Regarding Regulation 10(e), CB did not impart information to clients about description; rather, such information was provided by importers to CB as reflected in invoice and bill of lading. Therefore CB cannot be held liable for failure to exercise due diligence in imparting information as CB merely acted on documents provided by importer - The restrictions on various types of peas created doubts in understanding of import policy; while initially all peas were restricted, subsequently import policy for Yellow Peas was made free subject to IMS registration but other peas remained restricted; such changes through series of amendments could have created doubts in minds of importers or CBs. The misdeclaration was discovered by DRI during investigation after clearance and was not identified by customs officers at port of import prior to clearance, demonstrating that such violation was not identifiable at time of customs clearance by CB or port authorities - CB was not expected to be equipped with knowledge of all DGFT import restrictions and cannot be expected to verify every provision of Foreign Trade Policy beyond documents provided by importer. The impugned order contained inconsistencies with references to different SCN dates and inquiry report dates showing lack of proper appreciation of facts – Violation of Regulation 10(d) is not sustainable. Violation of Regulation 10(e) is not sustainable. Revocation of CB license is set aside. Forfeiture of security deposit and penalty is set aside – The appeal is allowed
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