TaxTMI 
TaxTMI 
2026 (6) TMI 1308
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....ensing Regulations, 1984 (CHALR) and now Regulation 7(2) of Customs Brokers Licensing Regulations (CBLR), 2018. 2.2 During an investigation conducted by Directorate of Revenue Intelligence, Mumbai Zonal Unit (DRI MZU), on improper availment of export benefits by overvaluation of export goods on the basis of fake/ bogus export documents relating to export consignments of M/s Paras Industries, Mumbai; M/s Lorgan Lifestyle Limited, Pune, it was found that the appellant CB had handled such exports besides another 19 CBs. Further, enquiry was held with the Consulate General of India, Dubai, UAE on overvaluation of export goods. In a reply letter dated 08.03.2018, it was reported by the said Consulate General that from scrutiny of the documents provided by Federal Customs Authority, Dubai, it appeared that the goods have been cleared with unit values much lower than what was declared to customs authorities in India at the time of export. On the basis DRI, Mumbai had sent an offence report in the form of Show Cause Notice (SCN) No.28/ADC/ADJ(X)/2023-24 ACC dated 01.08.2024. Hence, the department had initiated investigation against such exports done by M/s Paras Industries, Mumbai. Acco....
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....ned Counsel for the appellants contends that all the allegations of violation of Regulations 10(d), 10(e) and 10(n) of CBLR, 2018 in their case have been countered by them. The main argument advanced by the Learned Advocate against the impugned order dated 25.03.2025, is that in respect of S/Bs filed during 2011-2016, the department had initiated action against the appellant after long delay of nearly 10 years, which have been held by Courts as not maintainable. He further stated that as per CBLR, 2018, any CB is required to maintain the records and accounts relating to imports/exports for a period of 5 years and therefore they were unable to produce relevant documents in respect of the above case involving exports of 10 years back transactions to prove their non-involvement in the alleged overvaluation. 3.2 Further, learned Counsel stated that the appellant CB did not have any prior knowledge about the fact that the exporter is going to mis-declare or overvalue the goods; they had filed the declaration for export for the S/B as per the documents received through the exporter. He further stated that for the acts of misdeeds done by the exporter, the appellants CB cannot be held ....
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....hese regulations are extracted and given below as follows: "Regulation 10. Obligations of Customs Broker: - A Customs Broker shall - ... (d) advise his client to comply with the provisions of the Act and in case of non-compliance, shall bring the matter to the notice of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be; (e) exercise due diligence to ascertain the correctness of any information which he imparts to a client with reference to any work related to clearance of cargo or baggage; ... (n) verify antecedent, correctness of Importer Exporter Code (IEC) number, identity of his client and functioning of his client at the declared address by using reliable, independent, authentic documents, data or information;" 6.2 We find that the Principal Commissioner of Customs had come to the conclusion that the appellants CB had violated the above stated sub-regulations (d), (e) and (n) of Regulation 10 ibid on the following grounds: (i) the exporter had overvalued the goods using fake invoices supplied by Shri Suhel Ansari so as to claim undue export incentives. As the ca....
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....ation Certificate (BRC), CA Certificate, Bank certificates etc. evidencing cancellation of Alert removed from the customs system by the Assistant Commissioner, Drawback in File No. S/8-Misc/DBK(XOS) after entering the BRC details up to 31.12.2024. Therefore, the allegation against the appellants for failure to failure to comply with declarations and bring any non-compliance to the notice of department; failure to exercise due diligence and for non-submission of KYC documents under Regulations 10(d), 10(e) and 10(n) ibid are contrary to the facts on record. 8.1 Further, in another proceedings that was initiated earlier under CBLR, 2018 in the case of exports done by M/s Vaishnavi Exports and Imports Co. & M/s Janman Lifestyles Private Limited, the learned Principal Commissioner of Customs vide Order-in-Original No.91/CAC/PCC(G)/ SJ0CBS-Adj dated 02.04.2024, the CB license of the appellant had already been revoked and the entire security deposit have been forfeited along with imposition of penalty of Rs.50,000/-. In the appeal filed against the said order dated 02.04.2024, where there was delay in completing the adjudication proceedings in terms of Regulation 18 ibid, the Tribunal....
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....at intended empowering the Central Government to device a schedule of rates of drawback in view of engaging in computation of drawback on each incident of export. It was also held by this Tribunal, in that case, stating it clearly that the benefit, even if 'undue', derived by the exporter is not of such gravitas as to merit revocation of license to practice a profession and, more specifically, when the licensing authority itself appears to have discountenanced proper conjecture of the provision of law that supposedly made the impugned goods offending. Accordingly, the Tribunal had set aside the Order of the Principal Commissioner in suspending the appellant's CB license. 9.2 The relevant paragraphs in the said order are extracted and given below: "6. We find that, insofar as the charges are concerned, the impugned order has put together unrelated facts and rendered findings that, consequently, are illogical and untenable. It is seen that the charge of not having advised the client to comply with Customs Act, 1962 and rules and regulations thereof is not founded on any allegation that advice sought had not been rendered and nor is there an allegation that 'customs br....
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.... to forbear from withholding information contained in any order, instruction or public notice from a client who is entitled to receive them has been established with the finding that details of local procurement said to be prescribed in circular no. 16/2009-Cus dated 25th May 2009 was in breach; however, this fact had not been set out in the notice issued to appellant. There is also no reference to the said circular in the report of the inquiry officer. It would, thus, appear that the inspiration which prompted the licencing authority to refer to this mandate was not tested by offering opportunity at any stage to explain irrelevance of its contents to 'free shipping bills' filed for exports by the appellant or to explain that it had indeed been provided. This is tantamount to introduction of evidence after conclusion of all proceedings in which appellant had participated and is, this, untenable basis for upholding the charge of having breached regulation 10(f) of Customs Broker Licencing Regulations, 2018. 9. The allegation that the appellant had failed to maintain records and accounts has been upheld on the findings that appellant had not responded to summons and had fail....
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.... premised, it was much too late, and the stakes were much too little, for conducting any worthwhile investigation. To erect such a charge on such fragile foundations is sure recipe for it to fail to find favour. Thus, there is no basis for alleged contravention of regulation 10(n) of Customs Broker Licencing Regulations, 2018, as found in the impugned order, to be affirmed by us. 11. The charges of breach of regulation 10 of Customs Broker Licencing Regulations, 2018 do not sustain. There is no case that the goods had not been exported or evidence even that the impugned goods had not been manufactured out of duty paid inputs. The drawback involved in all the exports during the said period by M/s World Wide Export is not of such high order as to warrant penalties and detriments that were heaped upon them in the impugned order and those handled by the appellant were not under any claim at all. In these circumstances, we find ourselves unable to uphold the impugned order which is set aside to allow the appeal." 9.3 Therefore, in the present appeal before us too, the findings of the learned Principal Commissioner in respect of charges against Regulations 10(d), 10(e) and 10....
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....under which the rates of import and export duties are prescribed) or any other law for the time being in force, the value shall be the transaction value, i.e., the value actually paid or payable for import of the goods at the place of importation or export of the goods at the place of exportation subject to some conditions and Rules. In respect of imports, Rule 12 of the Import Valuation Rules authorizes the proper officer to reject the transaction value under certain circumstances and redetermine it based on the value of contemporaneous imports of identical goods (Rule 4), value of contemporaneous imports of similar goods (Rule 5), value arrived at through deductive method (Rule 7), etc. In cases of exports, the proper officer can, under certain circumstances, reject the transaction value under Rule 8 of the Export Valuation Rules and redetermine the value by comparison (Rule 4), through computation (Rule 5) or through a residual method (Rule 6). 10. It needs to be noted that when the officer rejects the transaction value and determines the value of the imported goods or export goods under the Rules, he re-determines the value to calculate duty under the Customs Act. He d....