CESTAT Upholds Penalty for CB’s Failure to Verify Exporter’s Representative’s Authenticity

UDL Logistics Pvt. Ltd. Vs Commissioner of Customs (CESTAT Bangalore)

Introduction: The case of UDL Logistics Pvt. Ltd. vs. Commissioner of Customs, adjudicated by CESTAT Bangalore, involves the imposition of penalties due to the failure to verify the genuineness of a person claiming to be the authorized representative of an exporter. Despite claims of online verification, the appellant faced penalties for violating Customs Broker Licensing Regulations (CBLR) 2018. This article delves into the details of the case, arguments presented, and the tribunal’s decision.

Detailed Analysis:

UDL Logistics Pvt. Ltd., a Customs Broker, faced penalties following the interception of export consignments containing prohibited red sanders logs instead of declared “Ductile Industrial Pipes.” The Commissioner imposed penalties and revoked the appellant’s license, citing violations of CBLR 2018. The appellant contested the penalties, arguing that they verified the exporter’s genuineness through online channels and complied in good faith.

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