Customs Broker verification duty under Regulation 10(n): authentic IEC/GSTIN checks suffice; continuous surveillance is not required.

Regulation 10(n) of the Customs Broker Licensing Regulations, 2018 requires a Customs Broker to verify the authenticity of IEC and GSTIN, identify the client through reliable, independent and authentic documents or information, and confirm that the client functions at the declared address. The obligation is one of due verification, not a duty to question the genuineness of government-issued registrations or to maintain continuous surveillance of the client's later whereabouts. On the stated facts, the documents were not shown to be forged or fake, and the adverse findings depended mainly on later non-traceability of one exporter and broad allegations against others. The alleged breach was therefore not established, and revocation of licence, forfeiture of security deposit and penalty were not sustainable.

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Issues: Whether the Customs Broker violated Regulation 10(n) of the Customs Broker Licensing Regulations, 2018 by not properly verifying the IEC, GSTIN, identity of the client and its functioning at the declared address, and whether revocation of licence, forfeiture of security deposit and penalty were sustainable.

Analysis: Regulation 10(n) requires verification of the correctness of IEC and GSTIN, identification of the client through reliable, independent and authentic documents, data or information, and verification that the client functions at the declared address. The obligation is to ensure that the documents relied upon are genuine and issued by the competent authority, not to sit in appeal over the correctness of the Government officers who issued them. Officially issued registrations and certificates carry a presumption of genuineness, and the Customs Broker is not required to physically inspect the premises or maintain continuous surveillance to ensure that the client remains at the same address thereafter. On the facts, the documents obtained were not shown to be forged or fake, and the adverse finding rested substantially on subsequent non-traceability of one exporter and a general allegation concerning other exporters without verification.

Conclusion: The alleged breach of Regulation 10(n) was not made out, and the order revoking the licence, forfeiting the security deposit and imposing penalty could not be sustained.

Final Conclusion: The appeal succeeded and the impugned order was set aside with consequential relief.

Ratio Decidendi: A Customs Broker discharges its obligation under Regulation 10(n) when it verifies the authenticity of government-issued IEC and GSTIN and uses reliable, independent and authentic material to identify the client and its declared place of business; it is not required to or guarantee the correctness of official issuances or maintain continuous surveillance on the client.

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