Customs broker penalty set aside where employee acted without knowledge, authorisation, or broker participation in export activity.

Penalty on a customs broker under the Customs Brokers Licensing Regulations, 2013 was unsustainable where the alleged wrongful export activity was carried out by an employee without the broker's knowledge or authorisation. The record showed no issued authority for the employee's conduct, no specific role by the broker in the transaction, and no evidence establishing the broker's participation or awareness. On those facts, the Tribunal held that the necessary basis for penal action against the broker was not made out, and the penalty was set aside.

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Issues: Whether penalty imposed on a customs broker under the Customs Brokers Licensing Regulations, 2013 was sustainable where the alleged wrongful export activity was carried out by its employee without the broker's knowledge or authorisation.

Analysis: The enquiry report and the adjudication record showed that the employee used the customs broker's licence for export activity without the broker's knowledge, that no authorisation had been issued to him for such conduct, and that the broker had not played any specific role in the transaction. The Tribunal noted that the employee had acted in two capacities and, on the facts found, his conduct in the impugned matter was not shown to have been authorised by the broker. In the absence of evidence establishing the broker's knowledge, participation, or authorisation, the basis for imposing penalty on the broker was not made out.

Conclusion: The penalty on the customs broker was not sustainable and was set aside.

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