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TMI Blog2023 (3) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... 9.3.2019 on behalf of three exporters for the export of 'ladies synthetic footwear' and 'ladies footwear' under CTH 64059000. On examination of the goods at the time of export by customs, it was noticed that the goods have been overvalued and were of very low quality. It was alleged that the exporter had overvalued the goods in order to claim excess export benefits. A penalty was imposed on the CB under Regulation 17(7) of the Customs Broker Licensing Regulations, 2018 (CBLR) as the adjudicating authority was of the view that the KYC verification was not done in a proper manner and hence they had erred in their duty as a Customs Broker. 2. I have heard Shri Derrick Sam, Advocate on behalf of the appellant and Smt. Anandalakshmi Ganesh, AR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been put on notice on the grounds of disagreement so that they could defend their case which was not done in the process of issuing the impugned order. Further, he relied on the judgment of the Hon'ble High Court of Delhi in the case of Kunal Travels (Cargo) Vs. Commissioner of Customs, IGI Airport, New Delhi reported in 2017 (354) ELT 447 (Del.) to submit that just because the goods which are exported do not corroborate with the declaration, it cannot be deemed to be a mis-declaration by CHA, hence there could be no guilt, wrong or fault on the appellant, which would merit a penalty, as the Shipping Bill document prepared by the CHA is based on the instructions / documents received from the exporter and therefore any information provid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the client. She hence prayed that the appeal may be rejected on merits. 5. A Customs Broker provides service to the EXIM community by way of helping them in completing the documentation process for the export / import of cargo. They are required as per the provisions of CBLR, 2018, to verify the antecedents of the importer / exporter so as to ascertain that the parties are genuine. Once a Customs Broker verifies the IEC, GST details etc. of an exporter, he could be said to have reasonably satisfied the requirement by verifying the documents which have been issued by Government departments. He is not further expected to enter into the role of an investigator and verify whether the documents issued by government departments and provided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oner of Customs, Chennai II [2022 (380) ELT 358 (Tri. Chennai)], para 13 of which is extracted below:- "13. These Regulations are in the nature of disciplinary rules for a Customs Broker. Revocation of licence is a major punishment which affects the livelihood of not only the Customs Broker but also those persons who are employed under him. The punishment being of such major nature, Regulation provides for the conduct of inquiry before adjudication of the Show Cause Notice issued to the Customs Broker. The inquiry proceedings is a measure to be cautious and to give sufficient opportunity to the person whose conduct is the subject matter of the Show Cause Notice. The purpose of such inquiry is to help the adjudicating authority to derive a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he instant case, though the inquiry officer has reported that there is no violation under Regulation 11(a), (d) and (n) of the CBLR, 2013 the adjudicating authority has proceeded to conclude that there is violation of 11(a) and 11(n), without informing the Customs Broker on the ground of disagreement with the inquiry report. In doing so, I find that there is violation of principles of natural justice." I find that this procedure has not been followed in the impugned order and it is defective to that extent. I also find that a penalty has been imposed on the appellant, for their alleged failure to do a proper KYC verification, arising from a lack of physical check of premises of the exporters as found required under Regulation (10)(n). it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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