AI Drafter 
TaxTMI 
TaxTMI 
2021 (9) TMI 409
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....ons, 2018 ('CBLR' for short) and thereby proposing to revoke the CB Licence issued to them, forfeit the security deposited by them and also to impose penalty upon them under Regulation 18 of the CBLR, 2018 for their failure to comply with the provisions of CBLR, 2018. Thereafter, the appellant filed its detailed reply before the Inquiry Officer, as directed in the Show Cause Notice. 1.2 The Inquiry Officer, namely, the Assistant Commissioner of Customs, however, vide Inquiry Report dated 07.10.2020 gave a categorical finding inter alia in the following words: " DISCUSSIONS AND FINDINGS 26. ... 27. ... 28. ... ...29. On careful perusal of the Department's allegations and the submissions made by the C....
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.... 32. Accordingly, the charges levelled against the Customs Broker do not hold water based on the proper and explicit explanations and counter offered by them in this regard." The conclusion of the Inquiry Officer was that the violation of the provisions contained in the Show Cause Notice was not sustainable. 2. Thereafter, the Commissioner who had issued the Show Cause Notice took up the matter for adjudication and has, vide impugned order, concluded that the appellant has not acted with due diligence and in turn, has violated Regulations 10(d) and 10(n) of the CBLR, 2018 and thereafter, imposed a penalty of Rs. 25,000/- on the appellant. Against this, the present appeal has been filed before this forum. 3. Heard Ms. K. Nanc....
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....is client to comply with the provisions of the Act and in case of non-compliance, shall bring the matter to the notice of the Deputy Commissioner of Customs or Assistant Commissioner of Customs; (e) exercise due diligence to ascertain the correctness of any information which he imparts to a client with reference to any work related to clearance of cargo or baggage; (f) not withhold information contained in any order, instruction or public notice relating to clearance of cargo or baggage issued by the Commissioner of Customs, from a client who is entitled to such information; (g) promptly pay over to the Government, when due, sums received for payment of any duty, tax or other debt or obligations owing to the Gover....
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....exporter, as the case may be, and the name of the Customs House Agent, prominently at the top of such documents; (m) in the event of the licence granted to him being lost, immediately report the fact to the Commissioner of Customs; (n) ensure that he discharges his duties as Customs House Agent with utmost speed and efficiency and without avoidable delay...." 12. Clause (e) of the aforesaid Regulation requires exercise of due diligence by the CHA regarding such information which he may give to his client with reference to any work related to clearance of cargo. Clause (l) requires that all documents submitted, such as bills of entry and shipping bills delivered etc. reflect the name of the importer/exporter and th....
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....upon inspection of the goods they did not corroborate with what was declared in the shipping bills, cannot be deemed as misdeclaration by the CHA because the said document was filed on the basis of information provided to it by M/s. H.M. Impex, which had already been granted an IE Code by the DGFT. The grant of the IE Code presupposes a verification of facts etc. made in such application with respect to the concern or entity. If the grant of such IE Code to a non-existent entity at the address WZ-156, Madipur, New Delhi - 63 is in doubt, then for such erroneous grant of the IE Code, the appellant cannot be faulted. The IE Code is the proof of locus standi of the exporter. The CHA is not expected to do a background check of the exporter/clie....