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TMI Blog2024 (8) TMI 482X X X X Extracts X X X X X X X X Extracts X X X X ..... ed accordingly. However, it does not change the transaction value which will still be what was agreed to between the buyer and seller. The liability of the buyer will not increase or reduce even if the assessable value is re-determined by the officer. Valuation under the Customs Act is a part of assessment under section 17 of the Customs Act. It can be determined as a part of self-assessment by the importer or exporter or by the officer as a part of re-assessment or by any superior appellate authority while deciding the appeals. The Customs broker has no role or responsibility in deciding the assessable value. The power of the proper officer to determine the correct assessable value as a part of assessment does not lie with the Customs Broker. Thus, we find that the appellant Customs Broker had not violated Regulation 10(d). Violation of Regulation 10(e) - case of department in the offence report is not that the appellant had imparted some information to the exporter which is not correct but that the exporter had over valued exports - HELD THAT:- The appellant, as Customs Broker, does not provide the value of the goods. Therefore, the allegation that the appellant had violated Regu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal dated 11.4.2023 [Offence report] issued by the Additional Commissioner confiscating goods but allowing their redemption on payment of fine and also imposing penalties on the exporter and also on this appellant. 5. A copy of this order-in-original passed by the Additional Commissioner was received by the Commissioner. It appeared from it that appellant had violated various provisions of CBLR. Therefore, treating the Additional Commissioner s order as the offence report, the Commissioner of Customs (Airport and General), suspended the licence of the appellant on 18.5.2023 and gave a post decisional hearing on 30. 5.2023 during which the appellant had also given a written submission. After considering the submissions, the Commissioner confirmed the suspension on 09.6.2023 and issued a SCN dated 02.8.2023 proposing to revoke the appellant s licence, forfeit its security deposit and impose penalties. 6. An inquiry officer was appointed who submitted his report on 27.10.2023 stating that the appellant had violated regulations 10(a), (d), (e) and (n). The appellant made a representation dated 30.11.2023 against the enquiry report. The Commissioner though passed the impugned order on 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ise his client to comply with the provisions of the Act, other allied Acts and the rules and regulations thereof, 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; 14. The case of the Revenue is that since the exporter over-valued exports to avail undue drawback, it means that the appellant had failed to advise his client to comply with the provisions of the Act, other allied Acts and Rules and Regulations and thereby violated Regulation 10(d). 15. Learned counsel for the appellant submits that there is nothing on record to show that the appellant was aware of the alleged undervaluation or that it had not advised its client (the exporter) to comply with the Act or Rules. 16. Learned authorised representative supports the impugned order. 17. Merely because an exporter has allegedly violated any provisions of the Act, it cannot be said that the Customs Broker had not advised the exporter to follow the provisions of the Act or Rules. In this case, the allegation is of overvaluation of exports by the exporter in order to avail undue drawback. The Customs Broker has neither ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion that the appellant had violated Regulation 10(e) is completely unfounded even if the offence alleged in the offence report is correct. Regulation 10(n) 21. Regulation 10(n) reads as follows: A Customs Broker shall (n) verify correctness of Importer Exporter Code (IEC) number, Goods and Services Tax Identification Number (GSTIN),identity of his client and functioning of his client at the declared address by using reliable, independent, authentic documents, data or information; 22. The case of the department is that when officers went to investigate, they found that the exporter was not functioning at its declared address. Therefore, according to the Revenue, the Customs Broker had not verified if the exporter operated from that address at all. 23. According to the learned counsel for the appellant, it is a well-settled legal position that the Customs Broker need not physically go to the premises of the client to see if he is operating from the address. It is sufficient if this verification is done using reliable, independent, authentic, documents, data or information. The appellant had obtained all the KYC documents including the GSTIN and IEC which showed that the exporter was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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