2023 (7) TMI 115

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....er Licencing Regulations, 2018, besides imposing penalty of Rs. 50,000 under regulation 17 of Customs Broker Licencing Regulations, 2018, by Commissioner of Customs (General), New Custom House, Mumbai, is their claim of injustice having been done to them on the ground that the impropriety of their Director, Bhavin Vijay Pujari, operating for his personal benefit in dealing with M/s Dhariya International, an exporter, has been unfairly laid at their door. Their primary contention that it is not they but the said individual, also the 'G' card holder of the licencee, had been proceeded against for imposition of penalties under Customs Act, 1962 in notice dated 31st May 2019. It was further contended by them that he had since resigned his direc....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... He also drew attention to the failure in adhering to the timelines prescribed in the Customs Broker Licencing Regulations, 2018 and that the inquiry had been undertaken in the absence of the appellant after refusal of the inquiry authority to allow cross-examination of the two individuals whose statements were proposed to be used against them. 4. Learned Authorized Representative argued that the resignation of the employee was nothing but an afterthought and that the appellant clearly stood to benefit from the conspiracy to secure incentives that the exporter was not entitled to. 5. On perusal of the inquiry report and the impugned order, we note lack of any finding on each of the charges levelled against them. Both these records me....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ration in their quantity. xxxxx 16.8 Thus is is on record that the CB acting through his Director cum G card holder has never obtained proper authorizations in the first place. Since they are hand in glove with the Exporter to cheat the Government, giving a proper advice or exercising due diligence does not arise at all. Neither the CB was carrying out his responsibility of verifying the KYC of the client through independent reliable sources. As per the Regulation 13(12) the CB shall be held responsible for the acts of his employees in conducting the customs broker business. By saying that their G card holder cum Director has acted in his personal capacity, the CB cannot escape his responsibilities. 16.9 Thus, Fro....