Case Law Details
Shakelly Venkat Chand Vs Commissioner of Customs (CESTAT Hyderabad)
In the case of Shakelly Venkat Chand Vs Commissioner of Customs, CESTAT Hyderabad deliberated on the responsibility of a Customs Broker for the actions of an employee who misrepresented the broker before Customs Authorities. The court was confronted with an import scenario involving the use of false and incorrect materials, leading to discrepancies and allegations of malafide intent.
Analysis: Upon hearing the arguments from both sides and reviewing the case records, the court determined that the Customs Broker and its employee had failed to exercise due diligence, thereby leading to significant discrepancies in the imported consignment.
The court highlighted the essential role of the Customs Broker in facilitating the clearance of goods, expecting them not to accept any document, including KYC, mechanically, but instead to exercise due diligence in verifying the bonafide of the importer and the documents submitted.
The CESTAT emphasized that the Customs Broker and his employee had an obligation to report any suspicious activities to the Customs Authority, but they remained silent despite noting some impersonation. The court held that the Customs Broker, Shakelly Venkat Chand, was responsible for his employee’s actions, and his unawareness of misdeclaration did not absolve him of the liability.
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