2026-VIL-1832-CESTAT-DEL-CU
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CUSTOMS CESTAT Cases

Customs - Revocation of Customs Broker licence for alleged violation of Regulation 10(d) of the Customs Brokers Licensing Regulations, 2018 on account of failure to advise client on correct classification - Appellant, a Customs Broker, filed Bills of Entry for import of boiled betelnuts classified under CTI 2106 90 30, and the goods were cleared - After about a year, SCN proposed reclassification under CTI 0802 80, whereupon the Commissioner initiated proceedings under the Regulations and revoked the licence, forfeited the security deposit and imposed penalty - Appellant contended that classification is a matter of interpretation to which no mala fide can be attributed, that the goods were cleared on self-assessment which the proper officer could re-assess, and that the Out of Charge officer was also satisfied with the classification - Respondent contended that the Appellant failed to advise the importer on the correct classification - Whether the Appellant violated Regulation 10(d) by failing to advise the client to comply with the Act and Rules - HELD - Classification is part of assessment to be done by the importer through self-assessment under Section 17, and Section 17(4) itself provides for re-assessment by the proper officer as a remedy for wrong self-assessment. While correct facts such as nature, quantity and value of goods must be stated, classification involves an opinion according to the understanding of the importer or Customs Broker. The Act does not require them to anticipate whether the proper officer will accept the classification or what classification the adjudicating authority will decide after clearance, and such foresight is humanly impossible. Both competing entries were plausible, and a difference of view between the Customs Broker and the adjudicating authority does not prove any wrongdoing - Regulation 10(d) was not violated, the impugned order is set aside and the appeal is allowed with consequential relief, and the Commissioner is directed to enable the Appellant to file documents on the ICEGATE portal immediately.rnrn rnrnIssue 2: Violation of Regulation 10(e) of the Customs Brokers Licensing Regulations, 2018 - Duty of Customs Broker to exercise due diligence to ascertain the correctness of information imparted to client - Appellant, a Customs Broker, classified imported boiled betelnuts under one tariff item as per its understanding, and the licence was revoked on the ground that due diligence was not exercised in advising the client on classification - Whether the Appellant violated Regulation 10(e) - HELD - A Customs Broker has only the documents with him and no power to inspect the goods, and action is warranted only where there is evidence of connivance in mis-declaration or awareness of mis-declaration not brought to the notice of the officers. No such case was made out, and the finding that the Appellant did not fail to advise on classification also answers the question under Regulation 10(e) in the negative - Regulation 10(e) was not violated and the licence revocation, forfeiture of security and penalty cannot be sustained.
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