TaxTMI 
TaxTMI 
TaxTMI 
2025 (9) TMI 73
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....f the suspect registrants exported goods and identified the customs brokers who had handled such exports. 3. The DGARM passed this information to the concerned Commissioners who had licensed the customs brokers including the Commissioner of Customs (Airport & General), New Delhi. The Jurisdictional GST officers were asked by DGARM to verify the bonafides of the registrants. Based on the reports of the field formations it was felt that the customs brokers including the appellant herein had filed shipping bills for export of goods by entities who had not existed and thereby violated Regulation 10 (n) of CBLR, 2018. 4. The Commissioner, by order dated 25.08.2020, suspended the appellant's customs broker license and gave post-decisional hearing on 07.09.2020 and thereafter confirmed the suspension by order dated 29.09.2020. 5. Thereafter, a show cause notice dated 21.12.2020 was issued to the appellant proposing revocation of its license, forfeiture of its security deposit and imposition of penalty. In the show cause notice, an Enquiry Officer was also appointed who submitted his report on 18.03.2021. Thereafter, the appellant submitted its written statement of defence to the ....
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....ohan Trading Company has not filed any GSTR returns after December 2019. Thus, one of major supplier of M/s Lalit Enterprises appears to be a doubtful supplier. 3. It has been observed that outward export supply of the assessee shown in E-way Bills is Rs. 15,67,29,688/- but during scrutiny of GSTR 1 and GSTR 3B, same has been found of Rs. 3,13,42,987/-. Thus, it appears that either assessee has generated fake e-way bills or he has shown less supply value in their GSTR 1 and GSTR 3B. 4. In view of the above, the exporter - assessee M/s Lalit Enterprises does not appear to be bonafide". 9. Learned counsel for the appellant submits that the appellant had obtained all the necessary documents to verify the existence of M/s Lalit Enterprises and thereafter processed their exports through the customs. It is not necessary for appellant to physically visit and verify if the exporter was operating on its place of business. He also submits that the last export which the appellant had handled for M/s Lalit Enterprises was in February, 2019. 10. Learned counsel submits that it was evident from the report that the physical verification was conducted almost a year after th....
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....t aside. 16. We also find that Regulation 10 (n) of CBLR, 2018 reads as follows :- "(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" 17. The scope of this was examined by the bench of this Tribunal in Mauli Worldwide Logistics versus Commissioner 2022 TIOL 603 - CESTAT DEL. The relevant portion of this order is as follows :- "25. 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 d....
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....hat any officer by whom any such document purports to be signed or certified, held, when he signed it, the official character which he claims in such paper." 27. The onus on the Customs Broker cannot, therefore, extend to verifying that the officers have correctly issued the certificate or registration. Of course, if the Customs Broker comes to know that its client has obtained these certificates through 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. 28. 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 ....