TaxTMI 
TaxTMI 
2024 (6) TMI 140
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.... is as follows: "25. Accordingly, I pass the following order: ORDER In exercise of the powers conferred in terms of Regulation 14 &18 read with Regulation 17(7) of CBLR, 2018 (i) I hereby revoke CB License No. R-55/DEL.CUS/2006 (PAN AAHPC2938G) valid up to 31.05.2028 of M/s. Pushpanjali Logistics; (ii) I direct the CB to immediately surrender the original CB Licence No. R-55/DEL/CUS/2006 (PAN AAHPC2938G) valid up to 31.5.2028 along with all „F/G/H cards issued thereunder; (iii) I order for forfeiture of the amount of security deposit furnished by them; (iv) I impose penalty of Rs. 50,000/- on M/s Pushpanjali Logistics (PAN AAHPC2938G) under Regulation 18 of CBLR 2018. 26. This order is being issued without prejudice to any other action that may be taken against the CB or any other persons(s)/firm(s) etc. under the provisions of the Customs Act, 1962 and Rules/Regulations framed there under or any other law for the time being in force for the present or any other past violations committed by them." (emphasis supplied) 3. The factual matrix which lead up to the issue of this order is that the Directorate....
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....firmative, is the imposition of penalty of Rs. 50,000/- upon the appellant customs broker correct? Alleged violations of Regulations 10(d) and 10 (n) 8. The allegation in the show cause notice and the finding in the impugned order that the appellant had violated Regulations 10(d) and (n) is based on the fact that the appellant had filed 2 shipping Bills in the name of M/s Arise Enterprises Arise (of which one was purged by the system because no goods were brought for export within time) and ready-made garments were exported against the shipping Bill declaring high values to claim undue export benefits. The Additional Commissioner of Customs Mundra, had passed Order in Original dated 7.7.2023 wherein he held that on verification, Arise was found to be non-existent. Based on this order of the Additional Commissioner, Mundra that Arise did not exist, the Commissioner concluded that the appellant, who filed the Shipping Bill for Arise, had violated Regulations 10(d) and (n) of CBLR, 2018. 9. Regulation 10(d) reads as follows: 10. Obligations of Customs Broker- A Customs Broker shall- .... (d) advise his client to comply with the provisions of t....
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....er the Commissioner held that the appellant had violated regulation 10(d) for the following reasons: a) Arise, the exporter, on whose behalf the appellant had filed the shipping bill was found to be non-existent; b) The profile of Arise itself was suspicious because it was usually engaged in the business of footwear and had obtained a new GST registration for garments ostensibly to avail undue export benefits; c) Even the rent agreement uploaded by Arise on the GST portal to obtain the registration was found to be fake; and d) On verification, Arise was found to be non-existent and therefore, its GST registration was cancelled. 16. We find that no inference can be drawn from the above that the appellant had not advised Arise to comply with the provisions of the Customs Act or other allied Acts or rules or regulations or that it was aware of the violation of any Acts or Rules by Arise and had not brought it to the notice of the Assistant Commissioner or Deputy Commissioner. 17. In fact, the appellant, as the Customs Broker, had neither any role or authority or responsibility with respect to the GST registration of Arise. It is between Arise ....
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.... verification, the exporter was found to be non-existent and the GST registration was cancelled. It was a dummy firm created with the sole intention of filing incorrect shipping bills with higher valuation of goods to avail undue export benefits. The appellant, as the Customs Broker, was supposed to safeguard the interests of both the importers/exporters and the department and the appellant failed to do so. For all these reasons, he held that the appellant had violated Regulation 10(n). 24. Learned counsel for the appellant relied on several orders of this Tribunal on similar revocation of Customs Brokers‟ licences where the exporters had valid GST registrations issued by the GST officers and IEC issued by the Directorate General of Foreign Trade but after export, on verification by the department, the exporters were found to be non-existent. In such cases, it was held that there was no violation of Regulation 10(n). She prayed that this case being identical to these cases, the revocation of licence, forfeiture of security deposit and the penalty imposed may be set aside. 25. Learned authorised representative for the Revenue vehemently supported the impugned order. 2....
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....ntimate, it cannot be held against the Customs Broker. 29. We now proceed to examine the scope of the obligations of the Customs Broker under Regulation 10(n). It requires the Customs Broker to 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. This obligation can be broken down as follows: a) Verify the correctness of IEC number b) Verify the correctness of GSTIN c) Verify the identity of the client using reliable, independent, authentic documents, data or information d) Verify the functioning of the client at the declared address using reliable, independent, authentic documents, data or information 30. Of the above, (a) and (b) require verification of the documents which are issued by the Government departments. The IEC number is issued by the Director General of Foreign Trade and the GSTIN is issued by the GST officers under the Central Board of Indirect Taxes and Customs of the Government of India or under the Governments of Sta....
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....ough fraud or misrepresentation, nothing prevents it from bringing such details to the notice of Customs officers for their consideration and action as they deem fit. However, the Customs Broker cannot sit in judgment over the certificate or registration issued by a Government officer so long as it is valid. In this case, there is no doubt or evidence that the IEC, the GSTIN and other documents were issued by the officers. So, there is no violation as far as the documents are concerned. 32. The third obligation under Regulation 10(n) requires the Customs Broker to verify the identity of the client using reliable, independent, authentic documents, data or information. In other words, he should know who the client is and the client cannot be some fictitious person. This identity can be established by independent, reliable, authentic: a) documents; b) data; or c) information 33. Any of the three methods can be employed by the Customs Broker to establish the identity of his client. It is not necessary that it has to collect information or launch an investigation. So long as it can find some documents which are independent, reliable and authentic to esta....