2023 (4) TMI 513

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.... Customs Broker license issued by Commissioner of Customs, Tuticorin and is also transacting business at Bengaluru, Chennai, Mumbai and New Delhi. As per the investigation report dated 23.7.2020, a specific intelligence was received by Nhava Sheva Preventive Unit (Rummage and Intelligence) Mumbai that M/s. J. Tex India has fraudulently availed ineligible IGST refund, drawback and reward by using bogus GST registration issuing bogus GST invoices (where no GST duty has been paid to exchequer) and by filing shipping bills for exporting the goods involved therein. Further, the IGST refund amount which has been disbursed is equal to the FOB value of the shipping bill. Hence the case was taken up for investigation by Nhava Sheva Preventive Unit. ....

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....hese provisions and ordered for revocation of the license, forfeiture of security deposit and imposed penalty of Rs.50,000/-. Aggrieved by such order, the appellant is now before the Tribunal. 5. The learned counsel Shri S. Krishnanandh appeared and argued on behalf of the appellant. He submitted that the allegation raised against the appellant is that the appellant did not comply with the obligations cast upon him in terms of Regulation 10(d), 10(e), 10(n) and 10(q) of CBLR, 2018. The said Regulation reads as under:- "d) advise his client to comply with the provisions of the Act, other allied Acts and the rules and regulations thereof, and in case of non-compliance, shall bring the matter to the notice of the Deputy Commissioner of Cust....

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....t is submitted by the learned counsel that to obtain an IE Code, it is mandatory for any person to have a PAN issued by the Income Tax Department as well as to have a bank account. Further, to obtain GSTIN (UIN) registration, the appellant has to furnish the details of IEC / PAN obtained. The department would issue the GST number only after verification of address of the appellant and other details. All these registration numbers including GSTIN were active and operative. Only later, after the investigation was initiated, the department has cancelled the GST registration on 26.11.2019. As the exporter had PAN, IE Code, GST registration, the appellant handled the export consignments for and on behalf of the exporter. It is not necessary that....

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....y the client to him. Regulation 10(n) casts an obligation on the Customs Broker to verify the correctness of IE Code, GST Registration etc., identify of the client and functioning of client at the declared address by using reliable independent authentic document, data or information. In the present case, it is brought out from evidence that the exporter had a valid IE Code, GST registration, PAN card and bank details. It is submitted by learned counsel for appellant that the Customs Broker had done the KYC verification of the exporter namely J. Tex India by checking the details of GSTIN, IE Code. The department issues GSTIN number only after background checking of the exporter. The address and business details of the person who has applied ....