Customs broker misclassified goods (safety matches) to obtain...

Customs broker misclassified goods (safety matches) to obtain higher MEIS benefit for exporter. Charges were levied u/s 114(iii) of Customs Act, 1962. Key points: Classification of goods was a long-standing practice at the Custom House; classification being complex, it is a matter of belief, not amounting to misdeclaration as per Supreme Court precedent. No evidence of customs broker colluding with exporter or illegally benefiting. Acts cannot be considered willful, deliberate, or dishonest to evade duty as per Madras High Court ruling. For lapses by customs brokers, matter should be examined under Customs Brokers Licensing Regulations, 2018. No grounds for penalty were established; hence, the order was set aside, and the appeal was allowed.