TMI Blog2023 (6) TMI 473X X X X Extracts X X X X X X X X Extracts X X X X ..... that the exporters did not exist but also, by implication, conclusive proof that the appellant had not conducted the verification as required under Regulation 10(n). The facts of the present case are similar, except that the copy of the communication sent by DGARM was made available to the appellant. Other documents were not made available to the appellant. The appellant has contended that all the documents, as required by the Circular, were supplied by the appellant but a perverse finding has been recorded by the Commissioner that the provisions of Regulation 10 (n) of the 2018 Regulations has not been complied with merely because of the facts stated in the communication dated 17.08.2020 sent by DGARM. Appeal allowed. - CUSTOMS AP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... functioning of his client at the declared address by using reliable independent, authentic documents, data or information ; 3. In view of large number exporters linked with the Customs Brokers being reported be untraceable, it is apparent that these 62 Brokers have grossly violated the KYC guidelines under the said Customs Broker Regulations and Board Circular No. 09/2010-Cus dated 08.04.2010. In fact, analysis suggests the malfeasance of these Brokers in the execution of IGST Refund frauds. 4. List of Customs Brokers with GSTIN details of Untraceable exporters linked with them is attached with the mail. It is requested that the same be shared with the Customs Formation/Policy section of your zone where the Broker is registered (ori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that Board vide Circular No. 09.2010-Customs dated 08.04.2010 has specifically prescribed Know Your Customer (KYC) guidelines to the CBs/CHAs so that the CBs/CHAs are not (mis)used intentionally or unintentionally by importers/exporters indulging in fraudulent activities and with a view to control offences involving various modus-operandi such as misuse of export promotion schemes, fraudulent availment of export incentives and duty evasion by bogus IEC holders, etc. In this regard, a detailed guideline on the list of documents to be verified and obtained from the client/customer was also provided. Here, it appears that the CB failed to exercise due diligence and grossly violated the KYC guidelines of the said Circular dated 08.04.2010 r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cided on 20.04.2020] to contend that in similar circumstances, the order revoking the Customs Broker License for violation of Regulations 10 (n) of the 2018 Regulations was set aside. 5. Ms. Jaya Kumari, learned authorized representative appearing for the department however supported the impugned order. 6. In Perfect Cargo Logistics, the Tribunal observed :- 9. We have examined the SCN assisted by learned counsel for the appellant and learned authorised representative of the department. The sole basis on which the SCN was issued was that DGARM had sent a communication to the Commissioner that some of the exporters whose documents were processed by the appellant did not exist. There are no relied upon documents in the SCN nor is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 10(n) reads as follows: 10. Obligations of Customs Broker. 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; 11. According to the appellant, it had conducted the verification as required. According to the Revenue, it must have failed to conduct the verification because the exporters in whose name the exports were made did not exist. This conclusion that the exporters did not exist is based on a communication said to have been received from DGARM, which both the inquiry officer and the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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