Penalty for Importer Fraud on Custom Broker: Madras HC Waives Deposit

Pentagon Shipping Services Vs Additional Commissioner of Customs (Madras High Court) The Madras High Court addressed a petition filed by Pentagon Shipping Services, a licensed Customs Broker, challenging a penalty levied against it under Section 112(a) of the Customs Act, 1962. The penalty was imposed because the importer, for whom the broker acted, allegedly misdeclared the value of goods and fraudulently used another person’s import code. The Customs Department contended the broker was liable for lack of vigilance, which allowed the fraud. The petitioner argued that a penalty under Se...