9911796707
TMI Blog2024 (7) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... e address is completed as discussed in the above paragraph, if the client moves to a new premises and does not inform the authorities or does not get his documents amended, such act or omission of the client cannot be held against the Customs Broker. It is found that the Customs Broker had not failed in discharging his responsibilities under Regulation 10(n). The impugned order is not correct in concluding that the Customs Broker violated Regulation 10(n) because the exporters were found to not exist during subsequent verification by the officers. The Commissioner was not correct in holding that the appellant Customs Broker has violated Regulation 10(n) of CBLR, 2018 - the impugned order cannot be sustained and hence set it aside - appeal allowed. - DR. RACHNA GUPTA, MEMBER (JUDICIAL) AND MR. P. V. SUBBA RAO, MEMBER (TECHNICAL) Shri Pawan Kumar Tiwari, for the appellant (in person) Shri Rajesh Singh, Authorised Representative for the respondent ORDER We have heard the appellant and learned Authorized Representative appearing for the Revenue and perused the records of the case. M/s. Pawan Kumar Tiwari [Appellant], a licensed Customs Broker, is aggrieved by the order in original [I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant customs broker be sustained? c) If the answer to (a) above is affirmative, is the forfeiture of security deposit correct? d) If the answer to (a) above is affirmative, is the imposition of penalty of Rs. 50,000/- upon the appellant customs broker correct? Alleged violations of Regulation 10 (n) 5. The allegation in the show cause notice and the finding in the impugned order that the appellant had violated Regulation 10(n) is based on the fact that the appellant had filed shipping Bills in the name of some exporters who the DGARM found suspicious. Of these, physical verification was done in respect of three exporters by the field formations. Based on the reports in respect of these three exporters, it was concluded that the exporters had not existed and by implication, the appellant had not verified if they were physically present and were operating at those premises. Thus, it was concluded that the appellant had not fulfilled its mandate under Regulation 10(n). The three reports have been reproduced in the SCN as follows: (i) M/s. GS Industries (07EGPPS7923R1Z3) Remarks of jurisdictional officer (RUD-I): M/s. G S Industries is non-existent exporter. NOC denied. (ii) M/s. R G E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tic documents, data or information 8. Of the above, (a) and (b) require verification of the documents which are issued by the Government departments. The IEC number is issued by the Director General of Foreign Trade and the GSTIN is issued by the GST officers under the Central Board of Indirect Taxes and Customs of the Government of India or under the Governments of State or Union territory. The question which arises is has the Customs Broker to satisfy himself that these documents or their copies given by the client were indeed issued by the concerned government officers or does it mean that the Customs Broker has to ensure that the officers had correctly issued these documents. In our considered view, Regulation 10(n) does not place an obligation on the Customs Broker to oversee and ensure the correctness of the actions by the Government officers. Therefore, the verification of documents part of the obligation under Regulation 10(n) on the Customs Broker is fully satisfied as long as the Customs Broker satisfies itself that the IEC and the GSTIN were, indeed issued by the concerned officers. This can be done through online verification, comparing with the original documents, etc. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e identity of his client. It is not necessary that to only collect information or launch an investigation. So long as it can find some documents which are independent, reliable and authentic to establish the identity of his client, this obligation is fulfilled. Documents such as GSTIN, IEC and PAN card issued etc., certainly qualify as such documents. However, these are not the only documents the Customs Broker could obtain; documents issued by any other officer of the Government or even private parties (so long as they qualify as independent, reliable and authentic) could meet this requirement. While obtaining documents is probably the easiest way of fulfilling this obligation, the Customs broker can also, as an alternative, fulfill this obligation by obtaining data or information. In the factual matrix of this case, we are fully satisfied that the appellant has fulfilled this part of the obligation under Regulation 10(n). 12. The fourth and the last obligation under Regulation 10(n) requires the Customs Broker to verify the functioning of the client at the declared address using reliable, independent, authentic documents, data or information. This responsibility, again, can be fu ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
