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2021 (6) TMI 832 - AT - CustomsRevocation of Customs Broker License - forfeiture of security deposit - penalty under regulation 18 of Customs Broker Licensing Regulations, 2013 - alleged undervaluation - physical verification of the premises, or the person, of the importer - fictitious import export code (IEC) - breach of regulation no. 11(a), 11(d), 11(e), 11(m) and 11(n) of Customs Broker Licensing Regulations, 2013 - HELD THAT:- Though the inquiry, prescribed under Customs Broker Licensing Regulations, 2013, held that, while the breach of several of the obligations in regulation no. 11 had been substantiated, that failure to discharge duties with speed, as stipulated in regulation no. 11(m), was not, the licensing authority did, nonetheless, consider it fit to disregard that finding to conclude that the acceptance of documents from an unrelated person was indication of inefficiency but for which loss of revenue could have been avoided. The obligation to advice the client to comply with the provisions of Customs Act, 1962, the obligation to exercise due diligence by ascertaining the veracity of all information pertaining to client, the obligation to discharge duties as customs broker with utmost speed and efficiency and without any delay and the obligation to verify antecedents, correctness of importer exporter code, to identify his client and functioning of his client at the declared address were, according to the licencing authority, breached - The appellant had dealt with the beneficiary importer of the imported goods but against authorization furnished by the importer on record. It is also equally clear that the appellant, while dealing with Shri Anil Kumar Vachhar, did not appear to have evinced any interest in ascertaining the identity, or connection with the goods, of the importer on record. This is certainly not in accordance with the obligations that devolve upon a customs broker authorised to act on behalf of the importers under Customs Broker Licensing Regulations, 2013. At the same time, the existence of the importer on record not being in doubt and the role of such person vis-à- vis beneficial owner of the imported goods is yet to be decided upon in adjudication proceedings, it would, therefore, be improper to proceed on the assumption of any detrimental consequence to Revenue arising, directly or indirectly, from that breach. The appellant has dealt with only one bill of entry out of the several that were taken up for investigation and included in the show cause notice issued under Customs Act, 1962. The allegation against the imports is limited to undervaluation and it is difficult to appreciate that the breach of regulation no. 11(a) had, in any way, contributed to suppression of the value of the goods imported against the bill of entry. It is not within the remit of the customs broker to be conversant with the negotiations on price or the manner of transference of agreed recompense and, therefore, compliance with the said obligations would not have altered the allegations leveled against the importer, whether on the beneficial owner or of that on record. The detriments invoked against them are highly disproportionate. For not having insisted upon contact with the importer on record, revocation of licence and, that too, for first breach is, indeed, drastic - the ends of justice would be served by confirming the forfeiture of security deposit and the imposition of penalty of ₹ 50,000/- while setting aside the revocation of the customs broker licence - Appeal disposed off.
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