TaxTMI 
TaxTMI 
2022 (7) TMI 370
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....de Notification No. 20/2015-20 dated 25.07.2018, revised policy condition for Areca Nut of sub-heading 080280 from 'free' to 'Prohibited. However, as per said notification, import is free if CIF value is Rs. 251/- and above per Kilogram. As per CBIC Tariff Notification No. 81/2021- Customs (N.T.) dated 14.10.2021, Tariff value for Areca Nuts i.e., goods falling under sub-heading 080280 is USD 5252 Per Metric Tonne. 3.2 In the notice it was alleged that the Approximate value of 39462.3 Kgs of Areca Nuts/ Betel Nuts as found concealed in said consignment is Rs. 1,56,89,279/- and total duty evasion arising due to said gross misdeclaration is approximately Rs. 1,72,58,207/-. It was alleged that Concealed goods i.e., Areca Nuts found during examination is an edible nut and thus, becomes edible goods, All the food items require certification from Authorized Officer of FSSAI to the effect that the imported foods items are safe for consumption. In terms of Paragraph 2.03 of the Foreign Trade Policy, all imported goods shall also be subject to domestic laws, acts, rules, orders, regulations, technical specifications, environmental and safety norms as applicable to domestically procured g....
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....of importer and other documents in relation to said consignment from Shri Uttam Roy. Shri Uttam Roy runs a Freight Forwarding Agency by the name of M/s SFPL. b) He does not personally know the importer. He does not have any contract with M/s SFPL. c) After Customs clearance of import/ export consignments, he issued bills in the name of importer/ exporter and handed over the same to M/s SFPL for payment to them. He did not pay anything to M/s SFPL for providing Customs clearance work to them. d] He has never met Shri Tapas Kumar Biswas (Proprietor of M/s Regent Overseas) in person or any other authorized person of importer. Also, he has never communicated with the importer. e) He did not verify that Shri Tapas Kumar Biswas is the Proprietor of M/s Regent Overseas. f) He did not verify the registered address (as mentioned in KYC form) of the importer. g) He only verified GST certificate and IEC on GST website and DGFT website respectively. h) He did not receive any payment from the importer for payment of Customs duty. i) He did not check whether Shri Tapas Kumar Biswas was the actual beneficiary of the said cons....
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....ency and utmost speed. Revenue alleged that the appellant had never met the importer. It was alleged that the appellant obtained the KYC documents for importers through a middle man namely Shri Uttam Roy. It was also alleged that the appellant did not verify the registered address mentioned in the KYC documents of the importer. It was also alleged that the appellant failed to check if Shri Tapas Kumar Biswas the importer was he actually beneficially of the said consignment. The financial background of the importer was not verified. 5.2 Regulation 10(n) obliges the custom broker to verify correctness of importer/exporter (IEC) number, GSTIN Number, to identify of his client and functioning of his client at the declared address by using reliable, independent, authentic documents, data or information. It was alleged that the appellant had not verified the registered address of Importer before taking up the jobs, as Custom Broker, for clearance of the said consignment. 6. Learned Counsel for the appellant pointed out that the allegation that they had not verified address is incorrect. He pointed out that Shri Shankar Prasad Verma, the Director of the appellant company, had catego....
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....porter. In this regard it is seen that Hon'ble High Court of Delhi in the case of Shiva Khurana had observed as follows: "7. This Court is of the opinion that the impugned order is justified in the facts and circumstances of the case. The reference to the verification of "antecedents and correctness of Importer Exporter Code (IEC) Number" and the identity of the concerned exporter/importer, in the opinion of this Court is to be read in the context of the CHA's duty as a mere agent rather than as a Revenue official who is empowered to investigate and enquire into the veracity of the statement made orally or in a document. If one interprets Regulation 13 (o) reasonably in the light of what the CHA is expected to do, in the normal course, the cast is merely to satisfy itself as to whether the importer or exporter in fact is reflected in the list of the authorized exporters or importers and possesses the Importer Exporter Code (IEC) Number. As to whether in reality, such exporters in the given case exist or have shifted or are irregular in their dealings in any manner(in relation to the particular transaction of export), can hardly be the subject matter of "due diligence" expe....
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....(m) of CBLR, 2018. The said regulation requires the Customs Broker to discharge his duties as the Custom Broker utmost speed and efficiency and without any delay. The impugned order holds that the appellant had never communicated with the importer and did not verify the registered address as mentioned in KYC form of the importer. The impugned order. The impugned order also notices that the appellant had not verified the financial background of the importer. It could not be the responsibility of Custom Broker to actually physically verify the address of the importers or the financial background of the importer. The appellants have argued that the responsibility cast on them is to do whatever verification is possible on the basis of the documents like IEC Code, GST number, pan number etc., The impugned order holds that the Custom Broker failed to follow due diligence before accepting the custom clearance work of the importers. The next charge on the appellant is that he failed to follow the Regulation 10(n) of CBLR, 2018 which requires the Custom Broker to verify correctness of Importer Exporter Code IEC number, GSTIN, identity of his client and functioning of his client at the decla....