{"id":8450,"date":"2026-03-24T17:33:10","date_gmt":"2026-03-24T12:03:10","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=8450"},"modified":"2026-03-24T17:33:10","modified_gmt":"2026-03-24T12:03:10","slug":"no-license-revocation-for-customs-broker-without-undervaluation-knowledge-cestat","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/no-license-revocation-for-customs-broker-without-undervaluation-knowledge-cestat","title":{"rendered":"No License Revocation for Customs Broker Without Undervaluation Knowledge | CESTAT"},"content":{"rendered":"<pre><strong>Case Details: <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/customs\/101010000000416948\/customs-broker-had-no-knowledge-of-undervaluation-of-baggage-on-residence-transfer-no-contraband-being-imported-license-not-revoked-cestat\">P.T. Varghese &amp; Company vs. Commissioner of Customs, Ernakulam (2026) 40 Centax 21 (Tri.-Bang)<\/a><\/strong><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong>S\/Shri P.A. Augustian<\/strong>, Member (J) &amp; <strong>Pullela Nageswara Rao,<\/strong> Member (T)<\/li>\n<li><strong>Shri Baby. M.A,<\/strong> Adv., for the Appellant.<\/li>\n<li><strong>Shri M. Sreekanth,<\/strong> Asst. Commr. (AR), for the Respondent.<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p>The appellant, a customs broker, handled the clearance of baggage declared to belong to an Indian passenger returning from abroad, who had entrusted his personal effects and household goods to an overseas cargo company and authorised the broker\u2019s employee to file the declaration. At the time of clearance, the passenger was personally present before the customs officer, who verified the background and, upon examination, accepted the declared value and cleared the goods on payment of duty. Subsequently, the Special Investigation and Intelligence Branch conducted a re-examination and raised allegations of mis-declaration and undervaluation, on the ground that the consignment was not limited to the said passenger alone. In this context, reliance was placed on an email recovered during investigation, which indicated that the consignment also included baggage belonging to other passengers, thereby forming the basis for alleging misuse of the baggage provisions. The adjudicating authority thereafter revoked the license of the customs broker, forfeited the security deposit, and imposed a penalty for alleged violations of the Customs Brokers Licensing Regulations, 2018, which was contested by the appellant, and the matter was accordingly placed before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT).<\/p>\n<h2><em>CESTAT Held<\/em><\/h2>\n<p>The CESTAT held that the customs broker could not be held to have violated the relevant provisions relating to authorisation and verification, as the passenger was personally present before the customs officer and the documents furnished were accepted during initial clearance. It was observed that the broker had no knowledge of undervaluation until the subsequent examination by the investigating branch and had no authority in relation to the valuation of goods. The tribunal further held that no contraband, prohibited, or restricted goods were imported and, therefore, the extreme action of license revocation and forfeiture of the security deposit was not justified. However, considering the unrebutted email indicating failure to advise the passenger not to proceed with such clearance where baggage of other persons was also included, the penalty for violation of the relevant regulation was justified. Accordingly, the revocation of the license and forfeiture of the security deposit were set aside, while the penalty was upheld.<\/p>\n<h2><em>List of Cases Cited<\/em><\/h2>\n<ul>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2023%20(2)%20Centax%20157%20(Tri.%20%E2%80%93%20Cal.)&amp;itemType=AP\">Advent Shipping Agency v. Principal Commissioner<\/a> \u2014 2023 (2) Centax 157 (Tri. \u2013 Cal.) \u2014 Referred [Para 10]<\/li>\n<li>Ajay Oerseas shipping v. Commissioner \u2014 Final Order No. 20326\/2024 dated 30.04.2024 by CESTAT, Bangalore \u2014 Referred [Para 10]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2016%20(332)%20E.L.T.%2015%20(S.C.)&amp;itemType=AP\">Commissioner v. K.M. Ganatra and Co.<\/a> \u2014 2016 (332) E.L.T. 15 (S.C.) \u2014 Referred [Para 11]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2012%20(281)%20ELT%20524%20(Kar.)&amp;itemType=AP\">Commissioner v. MNS Exports (P) Ltd.<\/a> \u2013 2012 (281) ELT 524 (Kar.) \u2014 Referred [Para 10]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2019%20(366)%20E.L.T.%20883%20(Tri.%20-%20Del.)&amp;itemType=AP\">EXIM Cargo Services v. Commissioner<\/a> \u20142019 (366) E.L.T. 883 (Tri. &#8211; Del.) \u2014 Referred [Para 11]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2024%20(17)%20Centax%203%20(Tri.%20%E2%80%93%20Bom.)&amp;itemType=AP\">H20 Logistics v. Principal Commissioner<\/a> \u2014 2024 (17) Centax 3 (Tri. \u2013 Bom.) \u2014 Referred [Para 10]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2017%20(354)%20E.L.T.%20447%20(Del.)&amp;itemType=AP\">Kunal Travels (Cargo) v. Commissioner<\/a> \u2014 2017 (354) E.L.T. 447 (Del.) \u2014 Referred [Para 7]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2007%20(219)%20E.L.T.%20649%20(Tri.-Bang)&amp;itemType=AP\">MNS Exports Pvt. Ltd v. Commissioner<\/a> \u2014 2007 (219) E.L.T. 649 (Tri.-Bang) \u2014 Relied on [Paras 9, 13]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=(2026)%2038%20Centax%20277%20(Del.)&amp;itemType=AP\">Nitco Logistics Pvt. Ltd v. Commissioner<\/a> \u2014 (2026) 38 Centax 277 (Del.) \u2014 Referred [Para 11]<\/li>\n<li>Prabhu Shipping Systems v. Commissioner \u2014 2021 (11) TMI 666 &#8211; CESTAT CHENNAI \u2014 Referred [Para 11]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2015%20(317)%20E.L.T.%2085%20(Tri.%20-%20Cal.)&amp;itemType=AP\">S.C. Ghose &amp; Co (India) Pvt. Ltd v. Commissioner<\/a> \u2014 2015 (317) E.L.T. 85 (Tri. &#8211; Cal.) \u2014 Referred [Para 11]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2001%20(129)%20E.L.T.%2029%20(MAD)&amp;itemType=AP\">Sri Kamakshi Agency v. Commissioner<\/a> \u2014 2001 (129) E.L.T. 29 (MAD) \u2014 Referred [Para 11]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=(2024)%2017%20Centax%20162%20(Del.)&amp;itemType=AP\">Sriaanshu Logistics v. Commissioner<\/a> \u2014 (2024) 17 Centax 162 (Del.) = 2024 (388) E.L.T. 682 (Del.) \u2014 Referred [Para 11]<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: P.T. Varghese &amp; Company vs. Commissioner of Customs, Ernakulam (2026)&hellip;<\/p>\n","protected":false},"author":19,"featured_media":8460,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38,177,47],"tags":[],"class_list":["post-8450","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-customs","category-customs-news","category-custom-case-chronicles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>No License Revocation for Customs Broker Without Undervaluation Knowledge | CESTAT<\/title>\n<meta name=\"description\" content=\"CESTAT held customs broker\u2019s licence can\u2019t be revoked without knowledge of undervaluation; penalty upheld for failure to advise passenger.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.centaxonline.com\/blog\/no-license-revocation-for-customs-broker-without-undervaluation-knowledge-cestat\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"No License Revocation for Customs Broker Without Undervaluation Knowledge | CESTAT\" \/>\n<meta property=\"og:description\" content=\"CESTAT held customs broker\u2019s licence can\u2019t be revoked without knowledge of undervaluation; 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