Failure to verify importers’ credentials by CHA employees attracts penalty: Delhi HC dismisses appeals upholding CESTAT order

This article covers a decision of the Delhi High Court in a case involving CHAs (Customs House Agents) and penalties. The High Court dismissed appeals against a CESTAT order, affirming that CHA employees who fail to verify importers’ credentials can attract liability (penalty) under customs laws. The article sets out the factual context (what lapses were alleged), legal provisions invoked (customs act, penal provisions, duty of verification), arguments and counterarguments, and the court’s reasoning for imposing penalties. The decision underscores compliance responsibilities of intermediaries in customs operations.