Madras High Court|Friday, 23 January 2026
M/S.Imperial Shipping Service vs The Joint Commissioner Of Customs Iv
Bench
Hon'ble Mr. Justice Abdul Quddhose
Abdul Quddhose
M/S.Imperial Shipping Service vs The Joint Commissioner Of Customs Iv (2026) held that The court held that a Customs House Agent is not required to physically inspect goods and can rely on documentation provided by exporters.
M/S. Imperial Shipping Service, a Customs House Agent, challenged two orders from the Customs Department: one imposing a penalty of Rs. 30 lakhs for allegedly aiding the export of prohibited goods, and another suspending their Customs Broker License. The court examined the claims of negligence and lack of due diligence against the petitioner, who argued that they acted based on provided documentation and did not have the mens rea necessary for liability. Ultimately, the court found in favor of the petitioner, quashing the orders as they were deemed arbitrary and without jurisdiction.
The court held that a Customs House Agent is not required to physically inspect goods and can rely on documentation provided by exporters.
Mens rea is a necessary element for establishing liability under Section 114 of the Customs Act, which was not present in this case.
The court found that the reasoning provided by the Customs Department for imposing penalties and suspending licenses was arbitrary and lacked proper jurisdiction.
Order imposing penalty issued
Order suspending Customs Broker License issued
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Writ petitions filed
Hearing reserved
Final judgment delivered
