Order date – 21 December 2022

Facts –

• The Appellant, M/s. Sri Velavan Logistics Services Private Limited. is a customs broker, issued with a Show Cause Notice, inter alia, alleging that there was an attempt to export goods which were undervalued, and was also alleged to have rendered themselves liable for action under the Customs Broker Licensing Regulations (CBLR), 2013 for contravening the provisions of Regulations 11(n) and 11(d) ibid.

Issue –

• Whether there is violation of Regulations 11(n) and 11(d) of the Customs Brokers Licensing Regulations, 2013?

Order –

• The Tribunal held that there are no reasons brought on record as to the doubts about the truth or accuracy of the value declared in relation to the export of goods. In any case, the valuation of any goods could never be the domain of a Customs Broker as the same depends upon the contract between the exporter and the importer wherein no Customs Broker would have any say.
• Further, nowhere in the Order-in-Original or even in the impugned Order-in-Appeal has the respective authority revealed the role of the Customs Broker in either fixing the value at the time of entering into the contract by the exporter with the importer or at the time of declaring the same.
• The Tribunal held that the imposition of penalty on the appellant / Customs Broker is bad in law. For the above reasons, the impugned order is set aside and the appeal is allowed.