Penalty u/s 117 of the Customs Act, 1962 was levied against ...

Penalty on CHAs for not verifying exporters' KYC set aside; due diligence breach attracts CBLR provisions, not Sec 117 penalty.

Case Laws Customs

July 17, 2024

Penalty u/s 117 of the Customs Act, 1962 was levied against appellants, Customs House Agents (CHAs), for not exercising due diligence. The allegation was that appellants facilitated fraudulent export and availed undue drawback by not verifying exporters' antecedents. However, it was held that the act of not being diligent in verifying exporters' antecedents attracts provisions of CBLR, 2018, not penalty u/s 117. The Tribunal had previously ruled that penalty for not verifying exporter's KYC cannot be sustained. Consequently, the penalty imposed on appellants u/s 117 was set aside, and the appeal was allowed.

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Penalty u/s 117 of the Customs Act, 1962 was levied against ...

Penalty on CHAs for not verifying exporters' KYC set aside; due diligence breach attracts CBLR provisions, not Sec 117 penalty.

Case Laws Customs

July 17, 2024

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