Absence of Evidence of Taxpayer’s Authorisation as Customs Broker u/s 146 of Customs Act

The Bangalore bench of the Customs Excise and Service Tax Appellate Tribunal (CESTAT) has reduced the penalty to Rs. 25,000 for M/S. Pigeon International in absence of evidence regarding their authorization as customs brokers under Section 146 of the Customs Act. \r

The appellant was accused of aiding M/s. K T Technologies to import mobile parts by mis-declaring their value. Despite assertions of innocence by the appellant and admissions from the importer, Ms. Kajal Thakur, concerning their involvement, the adjudicating authority imposed penalties under Regulation 14 of Courier Import and Export Regulations and Section 117 of the Customs Act. \r

However, the tribunal found the penalty unsustainable under Section 117 due to lack of evidence of authorization. Considering the appellant's license revocation since September 2023, a lenient view was taken, reducing the penalty to Rs. 25,000 and partially allowing the appeal by setting aside the license revocation and bond enforcement.