Rajesh Tripathi Vs Union of India (Allahabad High Court)
Allahabad High Court heard a writ petition challenging the imposition of a penalty of Rs. 17.71 crore on a customs broker under Section 114(iii) of the Customs Act, 1962. The petitioner contended that he was neither the importer nor the exporter and had only provided advisory services to the exporter, relying on Regulations 10(d) and 10(e) of the Customs Brokers Licensing Regulations, 2018. The revenue, however, argued that the petitioner acted as an agent of the exporter under the Act and that the penalty order was appealable, citing Sections 114(iii), 114(AA), and 147 of the Customs Act along with Regulation 2(i)(d) of the licensing regulations.
The Court held that factual disputes regarding alleged mis-declaration of goods’ value and potential liability of the petitioner required examination through statutory appeal proceedings. It observed that the writ petition was not the appropriate forum for such interference under Article 226 of the Constitution. The Court disposed of the writ, directing that the petitioner may file a statutory appeal against the penalty within two weeks, which should be considered on merit without limitation objections. The High Court clarified that all grounds raised by the petitioner could be decided in the appeal independently.
