AI Drafter 
TaxTMI 
TaxTMI 
2021 (6) TMI 780
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....e security deposit mandated under the regulation no. 8 of Customs Broker Licensing Regulations, 2018, while imposing penalty. In the impugned orders, no. 38/CAC/CC (G)/RC/CBS (Adj) dated 12th July 2019 and no. 43/CAC/CC (G)/RC/CBS (Adj) dated 17th July 2019, Commissioner of Customs (General), Mumbai, has invoked regulation no. 14 of Customs Broker Licensing Regulations, 2018 for revocation and forfeiture while the former has, in addition, resorted to regulation no. 18 of Customs Broker Licensing Regulations, 2018 for imposition of penalty of Rs. 50,000. 2. Both the impugned orders are culmination of separate proceedings that can be traced to investigations undertaken by Directorate of Revenue Intelligence (DRI) into imports of 'consumer ....
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....im, mere admission in a statement preferred before an investigative agency does not suffice to establish factum of such participation. Furthermore, he pleaded that the proceedings under Customs Broker Licensing Regulations, 2018 was premature inasmuch as the facts and circumstances surrounding the allegation of evasion of duty was yet to be adjudicated by the competent authority under Customs Act, 1962. 4. According to Learned Authorised Representative, the appellant, through its employee, had connived with the importers in misdeclaring the value and quantity of imported goods. He pointed out that a large number of bills of entry had been processed under the aegis of the license issued to the appellant and who, unmindful of its obligatio....
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....e inquiry report in respect of the charges proved under Regulations 11(a). 11(d), 11(e) &11l(n) of CBLR, 2013 (Now Regulations 10 (a), 10 (d), 10 (e) & 10 (n) of CBLR, 2018j. Further, Board's Circular No. 09/2010-Cus dated 08.04.2010 has specified that a Customs Broker should follow the KYC guidelines for identifications of their client which were not followed by the CB in this case as established in the inquiry. 10.5 From the above, it is seen that the CB failed to comply with the Regulations 11(a), 11(d), 11(e) & 11(n) of CBLR, 2013 (Now Regulations 10 (a), 10 (d), 10 {el & 10 (n) of CBLR, 2018], In the era of facilitation, lot of trust is place on the Customs Broker who directly deals with the importers as the department doe....
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....'3. CB Section, NCH, Mumbai issued SCN dated 13.12.2018 vide F. No. S/8-105/2017-18 CBS leveled following charges against the Charged CB firm M/s Sharada Impex (CB - 11/1763). 3.1. Article of Charge - I: As per Regulation 10(a) of CBLR, 2018, A Customs Broker shall obtain an authorization from each of the companies, firms or individuals by whom he is for the time being employed as a Customs Broker and produce such authorization whenever required by the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be; 3.2. Article of Charge - II : As per Regulation 10(d) of CBLR 2018, A Customs Broker shall advise his client to comply with the provisions of the Act and in case of noncompliance, shall ....
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....e due diligence in imparting information to the clients, and verify antecedents of the client, does not arise.' with conclusion that '(iv) In this regard, as per Regulation 13(12) of CBLR, 2018 (erstwhile Regulation 17(9) of CBLR, 2013) which specifically stipulated that 'The Customs Broker shall exercise such supervision as may be necessary to ensure the proper conduct of his employees in the transaction of business and he shall be held responsible for all acts or emissions of his employees during their employment'. The provisions of said Regulation itself clarify that the acts of the employee are binding on the CB firm and they should not relinquish their responsibilities and shrink their accountability in this regard.....
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....rse of final hearing, I agree with the findings of the CB Sections and find that these Article of Charges - I to IV are conclusively proved against M/s. Sharada Impex (CB No. 11/1763).' 8. Thus, instead of rendering a finding on each of the four articles of charge, on the basis of evidence furnished and response of the customs broker, the enquiry authority has rendered a finding on a charge that was, apparently, not levelled against the appellant. The licensing authority, while sustaining the proposal in the show cause notice on the basis of the report of the enquiry officer, failed to take note of this aberration. That colourable exercise of jurisdiction, thereby, stands transferred to the impugned order. That the enquiry officer, and t....