TaxTMI 
TaxTMI 
TaxTMI 
2025 (12) TMI 995
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...., I find that the CB, M/s. Anax Air Services Private Limited, H4/120, Mahavir Enclave, New Delhi 1100045, holding Customs Broker Licence No. R-5/93 (AAACA1708J) has contravened the provisions of Regulation 1(4), 10(a), 10(d), 10 (e) and 10(n) of CBLR 2018 which amounts to breach of trust and faith reposed on the Customs Broker by the Customs. Hence, I pass the following order: ORDER In exercise of powers conferred in terms of Regulation 14 & 18 read with Regulation 17(7) of CBLR, 2018), (i) I hereby revoke the CB License No. R-5/93 (PAN: AAACA1708J) of M/s. Anax Air Services Pvt. Ltd.; (ii) I direct the Customs Broer to immediately surrender the Original CB Licence No. R-5/93 (AAACA1708J) along with all F/G/H cards issued there under; (iii) I order for forfeiture of the whole amount of security deposit furnished by them; (iv) I impose penalty of Rs. 50,000/- on M/s Anax Air Services Pvt. Ltd. (PAN No. AAACA1708J)undre the provisions of Regulation 18 of CBLR 2018 and Regulation 17 of CBLR 2018. This order is being issued without prejudice to any other action that may be taken against the Customs Broker or any other persons(s)/....
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....mpugned order. 8. The issues to be decided are: a) whether the appellant had violated Regulations 1(4), 10 (a), 10(d), 10(e) and 10(n) of CBLR; and b) If so, if the revocation of licence, forfeiture of security deposit and penalty of Rs. 50,000/- imposed on the appellant are proportionate to the offence committed. Regulation 1(4) 9. This regulation reads as follows: 1. Short title, commencement and application. - (1) These regulations may be called the Customs Brokers Licensing Regulations, 2018. (2)They shall come into force on the date of publication in the Official Gazette. (3)These regulations shall apply to, a Customs Broker who has been licensed and such other persons who have been employed or engaged by a licensed Customs Broker under these regulations or the Customs House Agents Licensing Regulations, 1984 or the Customs House Agents Licensing Regulations, 2004 or the Customs Brokers Licensing Regulations, 2013. (4) Every license granted or renewed under these regulations shall be deemed to have been granted or renewed in favour of the licensee, and no license shall be sold or otherwise transferred. ....
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....Bills. The only statement on record is that the Shipping Bills were filed in the name of Shivam Enterprises but at the behest of one, Shri Jadeja. It is also not the assertion of the appellant before us or at any stage before that the appellant had contacted the exporter Shivam Enterprises to ensure that the Shipping Bills were being filed on the request of Shivam Enterprises. 16. In filing the Shipping Bills, the Customs Broker acts as an agent of the exporter. Needless to say that one cannot act as an agent of someone without that person or entity asking and authorizing the person to be his agent. This is for two reasons- first that all actions of the agent will be on behalf of the principal and will bind the principal and second, any agent wants to be compensated for his services by the Principal. The question which arises is how could the appellant act as an agent of Shivam Enterprises without being engaged by it and without even contacting it and who was compensating the appellant for it's services. The answer to both these lie in the statement of Shri Dasari Narayanmurthi. No other document or evidence has been brought on record by either side to provide any other explanat....
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....hat like the vakalatnama obtained by an advocate to file any appeal or petition on behalf of the client. Admittedly, neither the appellant nor his G Card holder even contacted the exporter, let alone, obtaining any authorization from him. During the inquiry proceedings, copies of any communication which the appellant might have had with the exporter were sought and none were presented. It is an undisputed fact that the appellant was not engaged by the exporter to file the shipping bill but he filed the shipping bills in the name of the exporter Shivam Enterprises at the behest of Shri Jadeja and for a consideration of Rs. 1200 per container. Learned counsel argued before us that there is no bar on the customs broker obtaining clients through some others. We agree if someone connects the Customs Broker to any exporter or importer, there is no bar against it. But once the contact is made, the customs broker before filing documents in the name of any exporter, must obtain an authorization from the exporter. Admittedly, the appellant had not even contacted the exporter, let alone, obtaining any authorization from it. The letter of authorization to file the shipping bill in the name of ....
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....d). 30. Learned authorised representative for the Revenue vehemently supported the impugned order. 31. We have considered the submissions advanced by both sides on this question and perused the records. 32. Regulation 10(d) requires the customs broker to advise the client to follow the provisions of the Act, allied acts and Rules. It also requires the customs broker to report if the client was not following the provisions of the Act and Rules. There is no dispute that prohibited goods were attempted to be exported through the Shipping Bills filed in the name of the exporter Shivam Enterprises. The submission of the learned counsel for the appellant was that the appellant had no way of knowing about the mis-declaration and there is no evidence that the appellant had colluded in the attempted export and therefore, there was no scope for the appellant to report to the customs about the violations. We agree that there is nothing on record to show that the appellant had knowledge of the mis-declaration and therefore, the appellant could not have reported to the customs. However, the first part of the regulation would still apply, i.e., the appellant had to advise the client ....
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....f DGFT, ICEGATE and GSTN. It is his submission that the container was not stuffed in the presence of the appellant and therefore, he was unaware of its contents. The existence of Shivam Enterprises, the exporter in whose name the Shipping Bills were filed is also not disputed. For these reasons, the appellant had not violated Regulation 10(n). 42. The inquiry officer held that as per the statement of Shri Dasari Narayanmurthi, the G Card holder of the appellant, they handled the clearance work without KYC verification and without even knowing the exporter. He further recorded that by letters dated 26.9.2024, 3.1.2024 and 11.10.2024, he asked the appellant to submit copies of the KYC documents but he failed to do so and also did not appear before him for personal hearing. Hence, the inquiry officer concluded that the appellant had not verified the existence of the exporter and thereby violated Regulation 10(n) of CBLR. 43. In the impugned order, the Commissioner recorded that the appellant had accepted the work to clear exports in the name of Shivam enterprises without the mandatory check of the KYC documents and without even checking the credentials of the exporter. Had the a....
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....d incident and that several persons were using the appellant's licence to get documents filed. Needless to say that it is not impossible or even difficult for any genuine businessman to obtain an IEC in one's own name and filing the Shipping Bills or Bills of Entry either by oneself or through any customs broker. One resorts to filing or getting filed benami Shipping Bills or Bill of Entry in the name of some other IEC holder only with some ulterior motive. In this case, it was the export of prohibited goods. 49. It must be remembered that customs officers guard the nation's economic frontiers and regulate import and export of goods not only to ensure that duties, where due, are collected but also to ensure that goods are not imported or exported in violation of either Customs Act or any other law for the time being in force. Customs broker plays an important role in the processing of imports and exports and it is for this reason, that customs broker's licence is issued only after conducting an examination and after due diligence checks. If the Customs broker resorts to filing benami shipping bills and bills of entry, all export and import controls will be rendered meaningless a....