Penalty set aside on a Customs Broker for Overvaluation

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi, set aside a penalty imposed on a Customs Broker under Section 114(iii) of the Customs Act in connection with alleged overvaluation of export goods. 

The Tribunal held that mere filing of shipping bills on behalf of an exporter does not establish abetment of overvaluation. In the absence of evidence demonstrating knowledge, participation, or deliberate involvement in the alleged misdeclaration, a Customs Broker cannot be penalised merely because export goods were subsequently found to be overvalued. 

The Tribunal further clarified that non-cooperation during investigation, by itself, cannot justify a penalty under Section 114(iii).