Customs Brokers Not Liable if Client Shuts Down After Verified Transactions: CESTAT Rules No Violation Under Regulation 10(n)

This article covers a ruling by the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) that customs brokers cannot be held liable if a client shuts down following verified and compliant transactions. The tribunal found that the brokers had conducted due diligence under Regulation 10N, and the subsequent closure of the client’s business could not be attributed to any malfeasance or negligence on their part. As such, no violation was established, and the demand created against the brokers was quashed. The judgment reinforces the protection afforded to intermediaries who perform their statutory duties in good faith. (Word count: ~108)