Customs broker's license revocation and security deposit ...

Customs broker case: Alleged export fraud but insufficient evidence to prove violations.

Case Laws     Customs

October 18, 2024

Customs broker's license revocation and security deposit forfeiture were challenged due to alleged involvement in fraudulent export activities. The allegations included failure to verify documents and identities, misuse of factory stuffing permission, document forgery to avail drawback and incentives fraudulently, and value inflation through document manipulation. The Tribunal held that there was no evidence of the broker's prior knowledge of non-existent exporters or being a beneficiary of wrongly received drawbacks. The modus operandi involved forged factory stuffing permissions and export invoices signed by Central Excise Officers. However, the Department failed to prove violations under relevant Customs Broker Licensing Regulations. Consequently, the Tribunal set aside the order confirming the violations and allowed the appeal.

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