CESTAT Delhi Cancels Customs Broker's Licence For Helping Export Prohibited Goods Using Another Person/Firm's Name

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, has upheld the cancellation of a Customs Broker's licence after finding that the broker helped export prohibited goods by filing documents in the name of a firm that had never hired it. A Bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Member–Technical) dismissed the appeal filed by the assessee, M/s Anax Air Services Pvt. Ltd. and confirmed the order passed by the Commissioner of Customs, New Delhi. The case in hand, related to three export shipments filed at Mundra Port. The documents showed that mangoes and pomegranates were being exported. However, when Customs officers checked the containers, they found onions, whose export was prohibited at that time. During investigation, Customs found that the broker had never contacted or taken permission from the exporter named in the shipping bills. Instead, the broker filed the documents on the instructions of a third person, who paid ₹1,200 per container. The CESTAT noted that a Customs Broker works as an agent of the exporter. If the exporter has not authorised the broker, the broker cannot file any documents in their name. The Bench found that the broker had filed export documents without the exporter's permission and allowed others to use its licence for money, thereby failed to properly verify the exporter's identity The Bench described this practice as filing “benami” shipping bills, meaning documents filed in someone else's name for illegal purposes. The Bench stated that Customs Brokers play an important role in protecting India's borders. If brokers start filing documents for anyone who pays them, it could allow export or import of illegal or dangerous goods, including prohibited items. The Bench held that such conduct is a serious violation of the Customs Brokers Licensing Regulations and cannot be taken lightly. The Bench held that the main violations were serious enough, also observed that cancellation of the licence, forfeiture of security deposit and penalty of ₹50,000 were justified. Accordingly, CESTAT dismissed the appeal and upheld the action taken against the Customs Broker. Case Title: M/s Anax Air Services Pvt. Limited Vs. Commissioner of Customs, New Delhi (Airport and General) Case No.: Customs Appeal No. 50848 of 2025 Appearance for Appellant: Shri Sudhir Malhotra Appearance for Respondent: Shri Rajesh Singh Click Here To Read/Download Order

CESTAT Delhi Cancels Customs Broker's Licence For Helping Export Prohibited Goods Using Another Person/Firm's Name

Rajnandini Dutta

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CESTAT Delhi Cancels Customs Broker's Licence For Helping Export Prohibited Goods Using Another Person/Firm's Name

Rajnandini Dutta

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INR 1099+GST

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This is a premium content
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