2021 (12) TMI 857

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....under regulation 18 and imposing further penalty of Rs. 50,000/- on the appellant under regulation 22 of Customs Broker Licensing Regulations, 2013. 2. The proceedings were initiated following the detection of misdeclaration of goods entered for import against bill of entry no. 9232663/08.04.2017 and 9232425/08.04.2017. The notice. Prescribed under regulation 17 of Customs Broker Licensing Regulations, 2018, came to be issued much later on 31st January 2019. The impugned order consistently, and for reasons that we fail to comprehend, draws upon the provisions of the regulations that has been superceded by Customs Broker Licensing Regulations, 2018. Besides causing needless confusion, reference to the appropriate provisions demonstrates app....

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....ch, if condoned, would send a wrong message to the customs brokers. It was also contended by him that the delay in conclusion of inquiry report is not attributable to lack of diligence but occurred owing to transfer of the officer designated for the purpose. 6. The enquiry report was submitted on 3rd February 2021 whereas the enquiry was ordered consequent upon show cause notice dated 31st January 2019. It has been explained that the transfer of incumbents did delay proceedings and, being in the discharge of public duties, the lapse of time, by itself, does not suffice for invalidating the proceedings. 7. It is admitted by the appellant that only the import-export code had been verified and without personal interaction or ascertainment of....

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....rson who did participate in proceedings and did comply with the adjudication order. However, subsequent demonstration of good conduct by the importer cannot be presumed as having discharged a customs broker from the obligation to assure the good standing of a potential client through verification of the 'know your customer (KYC)' details. Admittedly, the appellant had not undertaken a sufficiently diligent verification and, instead, choose to rely upon the IEC registration which, fortunately for him, was genuine. To condone breach of this obligation would only encourage casual disregard of that obligation. The enquiry authority and the licensing authority cannot be faulted for considering this lapse on the part of the customs broker to be a....