Customs broker penalty under Customs Act fails absent proof of connivance, abetment, or deliberate participation in import violation.

Penalty under section 112(a) of the Customs Act, 1962 requires proof that the person knowingly did, omitted to do, or abetted an act rendering goods liable to confiscation. On the stated facts, the customs broker's mere filing of documents on the importers' instructions, without evidence of connivance, direct participation, or deliberate assistance in the import of restricted goods, was insufficient. The prior confiscation findings against the importers did not by themselves justify penalty on the broker, and the absence of proceedings under the Customs Broker Regulations further supported relief. The penalty against the customs broker was therefore set aside.

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Issues: Whether penalty under section 112(a) of the Customs Act, 1962 could be sustained against the customs broker in the absence of evidence of connivance, direct involvement, or abetment in the import of restricted goods.

Analysis: Section 112(a) fastens penalty only where a person, in relation to goods liable to confiscation, does or omits to do an act rendering the goods liable to confiscation, or abets such act or omission. The confiscation and penalties against the importers had already been upheld, but the material on record did not establish that the customs broker had knowingly assisted, connived with, or abetted the unlawful import. The mere filing of documents on the importers' instructions, without proof of deliberate participation in the violation, was insufficient. The absence of any proceedings against the broker under the Customs Broker Regulations also weighed against sustaining the penalty.

Conclusion: The penalty under section 112(a) was not sustainable against the customs broker and was set aside.

Final Conclusion: The appeals succeeded and the penalties imposed on the appellant were quashed.

Ratio Decidendi: Penalty under section 112(a) of the Customs Act, 1962 cannot be imposed on a customs broker unless the record shows that the broker knowingly did an act, omitted to do an act, or abetted the import so as to render the goods liable to confiscation.

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