Legal principle

A Customs Broker cannot be penalised for abetting an improper export under Section 114 merely for filing documents and lacking diligence; there must be material showing it knew of the wrongdoing or consciously took part in it.

Court decision

The writ petition was allowed. The Order-in-Original dated 30.05.2025, so far as it imposed a penalty of Rs.20,00,000 on the Customs Broker, and the appellate order dated 19.11.2025 confirming it, were set aside. The court did not send the broker to the CESTAT appeal because there was no material at all showing abetment. No costs were ordered.

Facts

M/s. Newport Shipping and Logistics is a Customs Broker in Chennai. It filed two shipping bills for an exporter whose goods were declared as buffalo meat. Acting on intelligence, customs examined the consignments and found prohibited bull/ox meat, liable to absolute confiscation (the goods are taken by the government) under Sections 113(d) and 113(i) of the Customs Act, 1962. A show cause notice under Section 124 was issued to the exporter and the broker. By Order-in-Original dated 30.05.2025 the Joint Commissioner imposed a penalty of Rs.20,00,000 on the broker under Section 114 for aiding and abetting (helping) the attempted export. The Commissioner (Appeals) dismissed its appeal on 19.11.2025, so the broker filed a writ petition in the Madras High Court.

Key provisions

• Section 114, Customs Act, 1962 — Penalty for attempt to export goods improperly etc