No Obligation on Customs Broker After Importer Relinquishes Goods: CESTAT Quashes Licence Revocation [Read Order]

Kushagra Shipping Agency, the appellant, is a licensed Customs Broker based in Kolkata. The agency had filed a bill of entry on behalf of an importer on 14th September 2021. By 18th September 2021, the importer informed the appellant that they had abandoned the goods and did not wish to proceed further.

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The importer also stated that the foreign supplier would take control of the goods for re-shipment. The appellant communicated this to the Customs Department and was discharged from their role by the importer.

A show cause notice was later issued to the appellant for alleged violations under Regulations 10(d), 10(m), 10(n), and 10(q) of the Customs Broker Licensing Regulations (CBLR), 2018. Following an enquiry, the Commissioner of Customs passed an order revoking the appellant’s licence and imposed a penalty of Rs. 50,000. Aggrieved by the order, the appellant approached the CESTAT.

The appellant's counsel argued that once the importer had abandoned the goods and instructed the appellant not to act further, the appellant had no authority or role left in the matter. They further argued that the appellant had cooperated with the Customs Department, arranged for inspection at their own cost, and provided all required documents.

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The department argued that the Customs Broker had failed to properly advise the importer, did not act diligently, and delayed the inspection process. They submitted that the broker had not verified the importer’s credentials as required under the regulations.

The two-member bench comprising Ashok Jindal (Judicial Member) and K. Anpazhakan (Technical Member) observed that once the importer had relinquished the goods and asked the Customs Broker not to proceed, the broker had no legal authority or duty to act further. The tribunal observed that the broker had provided inspection facilities and cooperated with the Customs authorities to the extent possible.

The tribunal held that the allegations of violating Regulations 10(d), 10(m), 10(n), and 10(q) of the CBLR, 2018 were not supported by evidence. It ruled that the revocation of the Customs Broker licence and the imposition of a penalty were not sustainable. The tribunal set aside the impugned order and allowed the appeal with consequential relief.

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