Intermediary Can’t Be Penalized Without Proof of Fraud Intent”: CESTAT Sides with Logistics Firm
The Ahmedabad CESTAT set aside penalties imposed on M/s Aeromar Logistics in an export misdeclaration case. Customs had penalized the firm for allegedly facilitating overvalued exports by M/s Fusion Overseas. The tribunal found Aeromar merely acted as an intermediary forwarding documents between shipping agencies and customs brokers, with no evidence of intentional wrongdoing. Ruling that penalties under Customs Act Sections 114(iii) and 114AA require proof of active involvement or knowledge of fraud, the bench cleared Aeromar of liability. The judgment reinforces that intermediaries without direct role in violations cannot face penalties, providing clarity on trade facilitation responsibilities.
M/s Aeromar Logistics (I) Pvt Ltd
VERSUS
Commissioner of Customs –Ahmedabad