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2022 (7) TMI 1429 - AT - CustomsRevocation of Customs Broker License - forfeiture of security deposit - levy of penalty - importer alleged to be indulging in trade based money laundering by overvaluing the imported goods was issued to the importers - HELD THAT:- From the facts as stated in the inquiry report and in the impugned order, it is quite evident that the entire case made against the appellant is on account of their failure not to properly and completely verify the antecedents of the person/ client entrusting them with the paper and consignment for import. It is now settled preposition of law that there was no need for physical visit to the premises and meeting with the client by the CB before taking the job of clearance of the goods either for import or export. Principal Commissioner has relied upon the statement recorded during the course of investigation. These statements have not been corroborated. Even the statutory documents produced by the appellant for undertaking the KYC of the importer (IEC Holder) have not been found fake during investigation - The CB was require to do the KYC on the basis of the documents prescribed. Undisputedly such KYC was done by the appellant, only what was not done was physical meeting and physical verification of the premises. In the case of M/S POONIA & BROTHERS VERSUS COMMISSIONER OF CUSTOMS (PREV.) [2019 (4) TMI 911 - CESTAT NEW DELHI], wherein the Hon'ble Tribunal held that The CHA is not supposed to verify the each and every aspect about the business of importer as the Inspector of Department or Investigating agency. From the submission made by the ld. Advocate and fact on record, it is apparent that the appellant has taken due diligence while verifying the KYC of the appellant based on the record submitted by him. In the present case the contravention alleged against the importer is non-declaration of retail sale price on auto parts imported by them for assessment under Section 4A of the Central Excise Act, 1944 for CVD - it is found that the bill of entry was filed by the appellant after the goods were detained by the officers of DRI. The said bill of entry was filed on first check basis for verification of the goods before assessment. In such a situation, there are no mala fide or intentional violation of any provisions of the Customs Act can be alleged on the part of the Customs broker. In the case of SETWIN SHIPPING AGENCY VERSUS COMMISSIONER OF CUS. (GENERAL) , MUMBAI [2009 (9) TMI 759 - CESTAT MUMBAI], the Tribunal held that there is no requirement for the CHA to verify physically the premises of importer/exporter. The Tribunal also observed that it is a settled law that the punishment has to be commensurate and proportionate to the offence committed - In the present case, it is noticed that the punishment of revocation is not justifiable even if it is to be admitted that physical verification of the importer’s premises could have avoided the filing of the bill of entry by the appellant. Even in such a situation, the violation in respect of the cargo viz. the non-declaration of the RSP on the auto parts, a debatable point of interpretation, cannot be held against the appellant to result in the revocation of their licence. Admittedly, the Customs Broker enjoyed a very important position in the Customs House and has been licensed to undertake the work of Customs clearance on behalf of the importer. However, he does not replace the Customs Officer. Commissioner has relied upon the observations made by the Hon’ble Apex Court in para 15, even without referring to the facts. There are no merit in the impugned order and the same is set aside - appeal allowed.
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