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IN THE HIGH COURT OF JUDICATURE AT MADRAS
ABDUL QUDDHOSE
Imperial Shipping Service – Appellant
Versus
Joint Commissioner Of Customs IV – Respondent
| Table of Content |
|---|
| 1. writ petitions concerning customs penalties (Para 1 , 2 , 3 , 4) |
| 2. arguments presented by the petitioner (Para 5 , 6 , 7 , 8 , 9 , 10) |
| 3. court's analysis of mens rea and due diligence (Para 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19) |
| 4. final decision to quash penalties (Para 20) |
ORDER :
ABDUL QUDDHOSE, J.
The petitioner in both the writ petitions is a Customs House Agent (CHA). W.P.No.27556 of 2025 has been filed challenging the impugned order- in-original dated 30.05.2025 imposing a penalty of Rs.30 lakhs on the petitioner under Section 114 of the Customs Act (in short “the Act”) for allegedly aiding and abetting the exporter for attempting to export the prohibited goods.
2. W.P.No.27838 of 2025 has been filed challenging the impugned order dated 18.07.2025 passed by the Commissioner of Customs suspending the petitioner’s Customs Broker License under Regulation 16 of the Customs Broker Licensing Regulations, 2018 (in short CBLR, 2018).
3. Since the cause of action for passing the impugned orders in both the writ petitions is one and the same, both the writ petitions are disposed of by a common order.
4. The crux of the matter is that the petitioner, who is a Customs H
To impose penalties under customs law, proof of mens rea is required; mere involvement without knowledge of misdeclaration does not constitute abetment.
The court ruled that penalties against customs brokers must be based on clear evidence of misconduct, not mere assumptions.
Customs brokers must exercise due diligence, but are not responsible for verifying the genuineness of client documents beyond established obligations.
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