Penalisation of Customs Broker for Misclassification of Imported Goods

The Principal Bench of the Customs, Excise and Service Tax Appellate Tribunal set aside penalty imposed upon Three Aces Global Logistics Pvt. Ltd. under Section 112(a)(ii) of the Customs Act after holding that mere misclassification of imported goods does not automatically render the goods liable to confiscation under Section 111(m). 

The Tribunal reiterated that misclassification is essentially a matter of assessment and opinion and, absent evidence of deliberate misdeclaration or connivance, penal liability cannot be fastened upon a Customs Broker acting on the basis ofdocuments and declarations furnished by the importer.