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2021 (4) TMI 401 - AT - CustomsImposition of penalty on Customs Broker - customs broker had not verified KYC and has violated Regulation 10(n) of Customs Brokers Licensing Regulations (CBLR), 2018 - HELD THAT:- A show cause notice has to be issued within 90 days from the date of receipt of the offence report. In the present case, the copy of the order passed by the adjudicating authority at Mumbai Customs is dated 29.05.2019. The same was communicated to Chennai Customs. If the said order is considered as offence report, show cause notice ought to have been issued on or before 28.08.2019. In the present case the show cause notice is dated 26.11.2019. Thus there is delay in issuing the show cause notice which is clear violation of Regulation 17(1) of CBLR 2018. The jurisdictional High Court in the case of M/S. BHUVAN SHIPPING SERVICES VERSUS THE COMMISSIONER OF CUSTOMS, THE INQUIRY OFFICER AND ASSISTANT COMMISSIONER OF CUSTOMS [2021 (4) TMI 24 - MADRAS HIGH COURT] has held that when the SCN is issued beyond 90 days of the offence report, the consequential order passed cannot sustain. The second violation argued by Ld. Counsel is with regard to Regulation 17 (5) of CBLR 2018. It is submitted by the Ld. Counsel that the inquiry report has been submitted with delay of 12 days. In page 31 covering letter for forwarding the inquiry report has been furnished. On perusal, it can be seen that though inquiry report is dt. 23.02.2020, the appellant has received it only on 09.03.2020 - From the records, it is seen that the appellant has received necessary documents from the importer for filing the Bill of Entry. The IEC of the importer is correct. As per the Regulation 10 (n), the customs broker has to verify correctness of IEC code of the importer, GSTIN, identity of his client using reliable information. Thus when the appellant has collected necessary documents, it cannot be said that they have violated Regulation 10 (n) of CBLR 2018 - On merits also, there are no allegation proved against the appellant - appeal allowed - decided in favor of appellant.
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