HIM Logistics Pvt. Ltd. Vs Commissioner of Central Excise & CGST (CESTAT Allahabad)
The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) Allahabad has overturned penalties imposed on HIM Logistics Pvt. Ltd., a customs broker, clarifying that such entities are not responsible for verifying the accuracy of documents provided by importers. The ruling, issued in the case of HIM Logistics Pvt. Ltd. Vs Commissioner of Central Excise & CGST, sets aside penalties totaling ₹15,000 that were upheld by the Commissioner (Appeals), Central Goods & Service Tax, Noida.
The case stemmed from allegations that HIM Logistics Pvt. Ltd., holding CHA licence no. R07/2004, sought to clear goods imported by M/s Shiv Shakti Enterprises with mis-declared values. It was contended that the customs broker should have been aware of previously enhanced values for similar goods imported by the same entity and advised accordingly. The importer subsequently admitted to undervaluation and paid differential duty, interest, and penalties.
The original authority imposed penalties on HIM Logistics Pvt. Ltd. for two bills of entry, which the Commissioner (Appeals) upheld. However, the CESTAT found that the customs broker had filed the bills of entry strictly in accordance with the documents provided by the importer.
The Tribunal emphasized that a customs broker’s role is to file documents based on the information provided, not to act as an investigating agency or customs officer to determine the correctness of those documents. The ruling highlighted that under Section 14 of the Customs Act, assessment is based on the transaction value reflected in the invoices. Any suppression of transaction value, leading to enhancement, is a matter for customs authorities to investigate.
