Legal principle

Section 117 of the Customs Act, 1962 applies only where no express penalty is elsewhere provided, and a courier agent or customs broker acting as a mere facilitator, absent mens rea, cannot be penalized for the omission or commission of the importer or exporter.

Court decision

The appeal was allowed in favour of the appellant: revocation of the courier license and enforcement of the bond and bank guarantee were set aside, and the penalties imposed under Section 117 of the Customs Act, 1962 and under Regulation 14 of the Courier Regulations, 2010 were set aside.

Facts

M/s Orbit Trans Express & Freight Pvt. Ltd., a licensed authorized courier agent at Bengaluru Airport, was alleged to have abetted M/s KT Technologies (proprietress Ms. Kajal Thakur) to import goods through Bengaluru Airport by mis-declaring value. The Commissioner revoked the courier license, enforced the bond and bank guarantee, and imposed a penalty of Rs. 50,000 each under Regulation 14 of the Courier Import and Export (Electronic Declaration and Processing) Regulations, 2010 and Section 117 of the Customs Act, 1962. The appellant had facilitated clearance of six consignments which were subject to open examination, and the adjudicating authority itself found no under-valuation or misdeclaration in those CBEs. The importer later claimed ownership of the seized goods, which were released to her on payment of duty and penalty on 11.01.2022, and proceedings against her were settled under Section 28(6)(i) of the Customs Act, 1962.

Key provisions

• Section 117, Customs Act, 1962 — Penalties for contravention etc not expressly mentioned
• Section 146, Customs Act, 1962 — Licence for Customs Brokers
• Regulation 12(ii), Courier Imports And Exports (Electronic Declaration And Processing) Regulations, 2010 — Obligations of Authorised Courier
• Regulation 14, Courier Imports And Exports (Electronic Declaration And Processing) Regulations, 2010 — Penalty
• Regulation 19, Customs Brokers Licensing Regulations, 2018 — Appeal
• Section 28(6)(i), Customs Act, 1962 — Recovery of duties not levied or not paid or short-levied or short- paid or erroneously refunded
• Regulation 8, Customs Brokers Licensing Regulations, 2018 — Execution of bond and furnishing of security