9911796707
TMI Blog2024 (8) TMI 482X X X X Extracts X X X X X X X X Extracts X X X X ..... have heard learned counsel for the appellant and learned authorised representative for the Revenue and perused the records. 3. The undisputed facts of the case are that the appellant was a Customs Broker licenced under the Customs Brokers' Licencing Regulations, 2018 [CBLR 2018] . It is aggrieved by the impugned order whereby its licence has been revoked, its security deposit has been forfeited and a penalty of Rs. 50,000/- was imposed on it under Regulations 14 and 18 for violating Regulations 10(a), (d), (e) and (n) of CBLR. 4. The facts which lead to the issue of the impugned order are that the appellant filed Shipping Bills for its client M/s. Shri Krishna Traders [Exporter] and these exports were investigated by the Customs authoriti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re: a) Did the appellant violate Regulations 10(a), (d), (e) and (n)? b) If so, is the revocation of licence, forfeiture of security deposit and imposition of penalty proportionate to the offence? Regulation 10(a) 8. Regulation 10(a) of CBLR reads as follows: "A Customs Broker shall - (a) obtain an authorisation from each of the companies, firms or individuals by whom he is for the time being employed as a Customs Broker and produce such authorisation whenever required by the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be;" 9. During investigation into the alleged offence against the exporter, the representative of the appellant was asked to produce the authorization which they had obta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Regulation 10(a). Regulation 10(d) 13. Regulation 10(d) of CBLR reads as follows: "A Customs Broker shall - ..... (d) advise 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmine the assessable value. If the officer re-determines the assessable value, duty, drawback etc. may be determined 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 p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... porter 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 operating at that address and it believed so and proceeded to file the Shipping Bills. 24. Learned authorised representative supports the impugned order. 25. As has been decided in several orders, Regulation 10(n), verification of the client operating from the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Additional Commissioner who sent his order (which forms the offence report in this case) to that very address. We have no hesitation in concluding that there is no evidence whatsoever that the appellant had violated Regulation 10(n).
29. In view of the above, we find that findings in the impugned order that the appellant had violated Regulations 10(a), (d), (e) and (n) are not correct and cannot be sustained. Consequently, the revocation of the appellant's licence, forfeiture of its security deposit and imposition of penalty cannot be sustained.
30. The appeal is allowed and the impugned order is set aside with consequential relief to the appellant.
(Order pronounced in open court on 06/08/2024.) X X X X Extracts X X X X X X X X Extracts X X X X
|
