Legal principle

A Customs Broker who files bills of entry based on documents supplied by the importer with the check list approved in writing by the importer, and without knowledge of the mis-declaration or of the applicable import restriction, cannot be held liable under Regulations 10(d) or 10(e) of CBLR 2018 for the mismatch between the importer's documents and the actual goods in the container.

Court decision

The Tribunal set aside the Order-in-Original dated 10.12.2025 and allowed the appeal in favour of the appellant CB, holding there was no violation of Regulations 10(d) and 10(e) and that the findings in the impugned order were contrary to the facts on record; accordingly, the revocation of licence, forfeiture of security deposit and imposition of penalty were unsustainable.

Facts

The appellant, M/s J.B. Singh & Sons, a Customs Broker holding a regular licence under Regulation 7(2) of CBLR 2018, filed three bills of entry for importer M/s Shree Gayathri Pulses, Jalgaon covering imports during November 2024 to January 2025 cleared through Nhava Sheva port. DRI intercepted one consignment (B/E No. 7999485 dated 25.01.2025) and found restricted 'Green Peas' mis-declared as 'Yellow Peas', contrary to DGFT Notification No.37/2015-20 which permitted Green Peas only through Kolkata port subject to a Minimum Import Price of Rs.200/Kg CIF; the goods were seized and the importer arrested on 19.03.2025. On the basis of the DRI report, the Commissioner of Customs, Pune suspended the CB licence under Regulation 16(1) and issued SCN No.01/2025-26 dated 01.08.2025 alleging contravention of Regulations 10(d), 10(e), 10(f) and 10(m). After inquiry under Regulations 17 and 18, the impugned order dated 10.12.2025 under Regulations 14, 17(7) and 18 revoked the licence, forfeited the entire security deposit and imposed a penalty of Rs.50,000, the charges under Regulations 10(d) and 10(e) having been held proved (10(f) and 10(m) not proved).

Key provisions

• Regulation 10(d), Customs Brokers Licensing Regulations, 2018 — Obligations of Customs Broker
• Regulation 18, Customs Brokers Licensing Regulations, 2018 — Penalty
• Regulation 14, Customs Brokers Licensing Regulations, 2018 — Revocation of licence or imposition of penalty
• Regulation 7(2), Customs Brokers Licensing Regulations, 2018 — Grant of License