Customs broker KYC checks for exporter in fraudulent exports case; repeat penalties u/s114(i)/114AA set aside

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Penalty under s.114(i) was premised on alleged failure by the customs broker to verify KYC and antecedents of the exporter, facilitating fraudulent exports. Since identical allegations had already been adjudicated in parallel broker-licensing proceedings and were found not proved, re-imposition of penalty on the same factual foundation was held unsustainable and was set aside. Penalty under s.114AA required proof that the broker submitted forged/fabricated documents or knowingly used such documents; the record showed no authority or practical scope for the broker to examine container contents, and the investigation yielded no concrete evidence of connivance, benefit, or specific role beyond conjecture, so this penalty was also set aside. Appeal allowed - CESTAT....