No Customs Penalty Without Omission or Commission: CESTAT Delhi

CESTAT Delhi Vacates Penalty on Forwarding Agent

CESTAT Delhi set aside a customs penalty imposed under Section 112 on Him Logistics, a forwarding agent, after finding no evidence of any act of omission or commission attributable to the party. The penalty was linked to misdeclaration in shipping, but the agent had no role in furnishing incorrect data.

The Tribunal emphasized that intermediaries cannot be penalized for defaults committed by exporters or principals unless they actively participated or failed in their statutory duties. Mere handling of documents does not imply complicity.

Practitioner Takeaway: Forwarding agents should maintain clear records to demonstrate separation from declaration responsibilities. Penalties require attribution of fault, not mere association with a transaction.