DELHI HIGH COURT: EXPORTERS NOT TRACEABLE, CUSTOMS BROKER CANNOT BE HELD LIABLE AFTER ISSUANCE OF 'LET EXPORT ORDERS', EXPORTERS NOT TRACEABLE

The Delhi High Court in the case Naman Gupta Versus Commissioner of Customs Airport And General observed and has held that as a customs broker, the petitioner cannot be held liable because the exporters were not traceable after the issuance of 'Let Export Orders' and that the export of the goods out of the country.

The bench comprising of Justice Yashwant Varma and Justice Ravinder Dudeja in the case observed that once the Importer Exporter Code, IEC particulars as mentioned are being verified from the system as maintained by the Customs, there is no such requirement statutorily placed

upon the Custom House Agent, CHA to undertake an independent exercise in order to verify the details as furnished by the exporter.

Therefore, the petitioner was granted a license to operate as a customs broker, CB which was valid up to 19.12.2025.

In the present case, the said matter which pertains to the previous exports of ball bearings, an investigation of which was being initiated by SIB, ACC, and Kolkata on the basis of four live export consignments of unbranded ball bearings filed by Gupta Vyapar.

Therefore, the court in the case observed that the four consignments were highly overvalued for export to defraud the exchequer by way of getting a very high input tax credit, ITC refund and the other exportrelated incentive.