TaxTMI 
TaxTMI 
2022 (8) TMI 1062
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....xport consignments (under Shipping Bill Nos. 5330386, 5330392, 5330396 & 5330397 all dated 21.09.2020 respectively) of 'Ball Bearings' filed by M/s. Gupta Vyapaar (IEC CTGPG 6543A) may be highly overvalued to defraud the Exchequer by getting higher input tax credit and export related incentives. Incentives claimed in the above Shipping Bills are as follows:- Total FOB value: Rs.2,93,05,216/- Total IGST refund claimed: Rs.52.77 Lakh Tatal MEIS claimed: Rs.8.79 Lakh. 2.1 On examination it was found that the goods were declared as 'Rolling Element Components/Parts (B.Bearing)' and the value of the goods was declared as USD 3.99 (Rs.290.87) per unit. The approx. weight of each ball bearing (net weight divided by number of units) was found to be approx. 9.71 grams. Supplier of the said goods contained in these Shipping Bills, M/s.Siddhivinayak Enterprises (Legal name-Akhai Das, GSTIN - 19BHAPD8662D1ZG), has been found to be non-existent. 2.2 These consignments of Ball Bearings were examined by an empanelled Chartered Engineer Shri Siya Ram Jha who submitted his report dated 08.10.2020. In his report, he stated that the unit price of each Ball bearing sho....
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....aring 8.20 gms 3 4700360 25-08- 2020 72.90 25000 3.95 No. Ball or Bearing 8.20 gms 4 470549 25-08- 2020 72.90 25000 3.95 No. Ball or Bearing 8.20 gms 5 4745100 27-08- 2020 72.90 25000 3.95 No Ball or Bearing 8.20 gms Evergreen Corporaion Address verified. East- west-north south - boundary of the exporter's address is also provided. Evaded all the summons issued by SIB, ACC. 6 4745791 27-08- 2020 72.90 25000 3.95 No Ball or Bearing 8.20 gms 7 4745806 27-08- 2020 72.90 25000 3.95 No Ball or Bearing 8.20 gms 8 4745808 27-08- 2020 72.90 25000 3.95 No Ball Bearing 8.20 gms 9 4011521 23-07- 2020 75.98 26000 3.95 No Ball Bearing 10.50 gms M/s. C.S. Internati onal (Chandr a Kala Shar....
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.... 9.3 As per Regulation 10(n) of CBLR, 2018, a Customs Broker shall verify correctness of Importer Exporter Code (IEC) number, Goods and Services Tax Identification Number (GSTIN), identity of his client and functioning of his client at the declared address by using reliable, independent, authentic documents, data or information; In view of foregoing discussions, it appears that the CB has handled consignments of three (03) risky exporters as mentioned above. Out of these three exporters, (i) One exporter i.e., Chandra Kala Sharma (M/s. C S International) has been found to be non-existent by jurisdictional GST Commissionerate. (ii) Further, as per verification report drawn by jurisdictional GST formation, M/s. Bevyesh Trading Private Limited was not found at its declared place of business, 348, Jessore Road, Kolkata - 700055, but a display in the form of a printout found on the wall of the premises indicated that the RTP has shifted to 48/1, Jessore Road, Tulsidham Complex, Kolkata-700055. No application for amendment has however been made till date. (iii) Further, Shri Sudhansu Poddar, authorized representative of CB M/s Shaikh &Pandit A....
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....corresponding contemplation of proceedings under Regulation 17(1) of the CBLR 2018 is pursuant to the purported Offence Report dated 16.08.2021 from the Deputy Commissioner of Customs SIB (ACC), Kolkata in respect of alleged offence which occurred almost one year prior to the date of the said Offence Report, is violative of the set judicial precedence in this regard. (II) THAT the Learned Principal Commissioner has failed to appreciate that as per Regulation 16(1) of CBLR, 2018, suspension of Customs Broker's Licence may be resorted to in appropriate cases where immediate action is necessary and in the appellant's case it was neither appropriate nor any immediate action was warranted in as much as the incidence of export was more than one year old. (III) THAT the learned Principal Commissioner of Customs (Airport & ACC) has failed to appreciate that the Appellant as a Customs Broker, was in no way concerned with the declaration of the consignments exported under cover of the impugned 12 Shipping Bills, with regard to the admissibility of export incentives in as much as it has filed the Shipping Bills electronically through ICEGATE based on the invoice and other do....
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.... present time and he keeps its door under lock and key. Both these affirmations, at no stretch of imagination, supports the Department's affirmation that the Firm M/s C.S. International (Chandrakala Sharma) is not in existence in the given address. The lack of coordination in the various sections of the Department for a transparent investigation is also a writ large in the manner. Department has ignored the submission of the Appellant dated 28.10.2021 pointing out inter alia that even on net searching made on 27-10-2021 in respect of M/s C.S. International, it has been found that they have submitted their last GST Return on 23-10-2021 for the FY 2021-22 for the same address at 278, Rabindra Sarani, Kolkata- 700007. If the investigation doesn't wake up from the slumber even after such information for a search and seizure of the premises of the exporter claimed to be a fraudster it is the action of the investigation not of the appellant Customs Broker that requires to be faulted with. (V) THAT the learned Principal Commissioner has erred in failing to appreciate that the allegation that none of the three suppliers to the exporter M/s. Bevyesh Trading are available in the giv....
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....lation 10(q) inasmuch as Customs Broker was required to co-operate with the Customs authorities and join investigation promptly in the event of any enquiry against them or their employees. Though one of the employees of the Customs Broker had verified the declared place of business in respect of the 3 exporters, however, as per verification report of GST officials, the exporter M/s. C.S. International (Chandrakala Sharma) has been found to be non- existent. The exporter had also evaded summons issued by the SIB (ACC). This fact implies that employee of the Customs Broker who has been authorized to give voluntary statement has not given truthful statement which implies that the Customs Broker is not willing to co-operate in the investigation and thereby appears to have violated the provisions of Regulation 10(q) of CBLR 2018. 10. We proceed to examine these. 11. As far as the first allegation regarding not verifying the value of the export goods is concerned we find that the Appellant is correct in stating that the CBLR do not require or authorize the Customs Broker to determine the value of the imported or export goods. The power of valuation of the goods under section 4 of t....
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....at M/s. Bevyesh Trading Pvt.Ltd. was not found at its declared place of business, 348 Jessore Road, Kolkata- 700055, but a display in the form of a print out found in the wall of the premises indicated that the RTP has shifted to 48/1, Jessore Road, Tulsi Dham Complex, Kolkata-700055. No application for amendment has however been made till date. By the same verification report it is noticed that the three suppliers of M/s. Bevyesh Trading Pvt.Ltd. were found to be non-existent at their declared place of business and the Appellant should have verified this. Firstly we do not think that the Regulation requires the Appellant to physically go to the premises of each of its clients and verify whether they are functioning from that place. Secondly, if the GSTIN Number is issued by the departmental officers, it is for them to verify whether they exist at that address or otherwise. 14. Lastly, as far as Regulation 10(q) is concerned, the allegation in the Show Cause Notice is that as per the statement of Shri Sudhansu Poddar, Authorized Representative of the Customs Broker, one of the employees of the Customs Broker has verified the declared place of business in respect of the three exp....