2024 (12) TMI 961

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....o. 75/CAC/PCC(G)/SJ/CBS-Adj dated 28th February 2024 ] of Principal Commissioner of Customs (General), Mumbai for revoking of customs broker licence [ no. 11/2000 ] along with forfeiture of security deposit under regulation 14 of Customs Brokers Licensing Regulations, 2018 as well as imposition of penalty of Rs. 50,000 under regulation 18 of Customs Brokers Licensing Regulations, 2018. 2. The impugned proceedings were initiated as a consequence of show cause notice issued to M/s World Wide Export and others in connection with the export of overvalued goods to claim ineligible drawback for which fake and bogus bills of purchase from purported buyers other than actual suppliers were furnished in support. The enquiry authority held that the....

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....e process undertaken on behalf of the exporter by the appellant had involved breach of the provisions of Customs Act, 1962 or any other law. 6. Insofar as the alleged breach of 10(e) of Customs Brokers Licensing Regulations, 2018 requiring the customs broker to exercise due diligence in ascertaining correctness of information which is imparted to a client, it would appear that inappropriate construct has been placed on the misconduct intended to be deterred. It was erroneous on the part of the customs authorities to construe every obligation in the Regulations as intended to ensure that customs broker is surrogate for customs authorities even to the extent of having to instruct importer/exporter on the contents of the statute. On the con....

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.... part of the customs broker to provide any relevant order or instruction withheld from the client and, that too, on such being adduced by the exporter in defence, that the charge may be brought to bear. That is glaringly absent here. 8. On the alleged breach of regulation 10(n) of Customs Brokers Licensing Regulations, 2018 - requiring a customs broker to verify certain details as well as identity and functioning of the client at declared address - the finding in the impugned order thus ' 19.6.3 19.6.3 In this regard, I have gone through the CB written submission dated 15.01.2024 and it is pertinent to mention the following findings : i. As per Regulation 10(n) of the CBLR9, 2018, it is duty of the CB verify functioning....