Customs Tribunal Clears CHA Firm of ₹1 Crore Penalty in Export Fraud Case, Cites Lack of Evidence
The Ahmedabad CESTAT quashed ₹1 crore penalties imposed on M/s Dhanlabh Logistics LLP, a Customs House Agent (CHA), in two export fraud cases involving overvaluation by exporters M/s K R International and M/s Fusion Overseas. The tribunal ruled the CHA merely processed documents received from intermediaries without intent to abet fraud, noting authorities failed to prove active complicity or mens rea. Citing precedents, it clarified CHAs cannot be penalized under Customs Act Sections 114(iii) and 114AA for third-party violations unless direct involvement is established. The judgment reinforces due process requirements for penalizing trade intermediaries.
M/s Dhanlabh Logistics LLP
VERSUS
Commissioner of Customs –Ahmedabad