Commissioner of Customs Vs Ravi Dhanwariya (Delhi High Court)
The Delhi High Court recently delivered its judgment in the case concerning the alleged involvement of a Customs House Agent (CHA) in duty drawback fraud, emphasizing the responsibilities and proportional accountability of CHAs under the Customs Brokers Licensing Regulations, 2018. The appeal was filed by the Commissioner of Customs under Section 130 of the Customs Act, 1962, challenging a CESTAT order dated 5th March 2025, which had restored the CHA licence of the Respondent while upholding a fine of Rs. 50,000. The original revocation of licence and forfeiture of the security deposit imposed by the Adjudicating Authority were set aside by CESTAT on the grounds of proportionality and absence of mala fide intent.
The case arose from an investigation into alleged over-valuation of export consignments by an exporter, M/s. Sharp Enterprises, facilitated by the Respondent CHA. The investigation, conducted by the Joint Commissioner of Customs at the ICD (Exports) and the Special Intelligence and Investigation Branch (SIIB), found substantial discrepancies between the declared export values and market prices for garments exported in October 2021. The total duty drawback claimed exceeded Rs. 13.6 lakh. Authorities seized the consignments under Section 110 of the Customs Act, 1962, considering them liable for confiscation, and withheld associated benefits.
