AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2024 (10) TMI 687
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....d by the Customs Preventive, New Delhi following an alert from the National Customs Targeting Centre (NCTC) regarding a high-risk import by M/s.Aparna Overseas under Bill of Entry No.3742746 dated 14.12.2022. The consignment was declared as "PP Regrind". However, upon examination, it was found to contain mis-declared and prohibited goods, including "E-Cigarettes" concealed with the declared goods. The consignment was imported under the Importer Exporter Code (IEC) of M/s. Aparna Overseas, but Shri Ashok Kumar was identified as the actual beneficiary. 3. M/s. Mahavir Logistics being the Customs Broker CB filed the Bill of Entry for this consignment. It was alleged that the CB failed to fulfill its obligations under Regulation 10(n) of the C....
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....d to Rs.50,000/- and neither the licence was revoked nor security was forfeited. The appellant has filed the instant appeal before this Hon'ble Tribunal. 6. Heard Shri T. Chakrapani, learned Consultant for the appellant and Shri Girijesh Kumar, Authorised Representative for the respondent and perused the records of the case. 7. The submissions of the learned counsel for the appellant is that it is an admitted position that CB did not contravene the provisions of Regulation 10(n) as they produced the KYC documents along with authorization from the importers and also all other documents required in that regard. The CB had verified the address of the importer and met the importer and also the KYC documents were duly verified. At the time of ....
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....ulation 10(n) of CBLR, 2018. To appreciate the issue, Regulation 10(n) is quoted below:- "Regulation 10(n) of CBLR, 2018 -- A Customs Broker shall - (n) 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." 10. Perusal of the aforesaid provisions show that the obligation on the Customs Broker is to verify the correctness of the IEC number, GSTIN and the identity of his client and functioning of his client at the declared address. Both the inquiry officer and the Adjudicating Authority had recorded the finding that the CB has obtai....
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.... 12. The Adjudicating Authority proceeding on the footing that CB was aware that Shri Ashok Kumar was the actual beneficiary as he was contacted by Shri Ashok Kumar, it was incumbent on the CB to have asked for the authorisation from the importer in favour of Shri Ashok Kumar and to have obtained the KYC documents of Shri Ashok Kumar being the beneficiary, have traveled beyond the ordinary requirements under CBLR Regulations, which only requires the CB to satisfy himself to the genuineness of the clients whom he is serving and which has not been found to be lacking. There is no such obligation on the CB to act as an Investigating Agency and determine the actual beneficiary before undertaking the job. In fact, the Adjudicating Authority hav....
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....EC of M/s. Aparna Overseas. The facts of the case reveal that the proprietor of Aparna Overseas sub-let his IEC to one Dr. Rajesh Mishra who further lent Rs.8 lakhs to Ashok Kumar for import of dates. According to the said Dr. Mishra, he had given the said amount to Ashok for import of dates and not for import of PP regrind or e-cigarettes. Thus, as per the investigations, it was Dr. Mishra who had made the requisite investment in this consignment. CB was not aware of the backend machinations between IEC holder, Dr. Mishra and Ashok Kumar. He was only dealing with Ashok. Therefore, it was reasonable of him to suspect that Ashok Kumar was the beneficial owner. Investigation has not recorded any statement of Shri Ashok. Inquiry Officer's dete....
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....tigations conducted that the actual facts came to light that it was Dr. Mishra, who was involved in this consignment. It is too much to be attributed that CB should have been aware of the entire link and modus operandi between the IEC holder, Dr. Mishra and Shri Ashok Kumar. 14. We are, therefore, of the opinion that it is highly improper to impose a burden on the CB to verify, who is the actual beneficiary in a transaction. The CB cannot be expected to act as an investigating agency and go beyond his obligations of verifying the KYC of his client. Both the Enquiry Officer and the Adjudicating Authority have laid unnecessary emphasis on the statement made by the proprietor of the CB that in his opinion, he is the actual beneficiary of the ....