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2022 (5) TMI 1050 - AT - CustomsRevocation of Customs Broker License - Forfeiture of security deposit - levy of penalty - Department has alleged that the appellant-Custom Broker has violated various provisions of the CBLR inasmuch as they did not verify the credentials of their client importers - retraction of statements - HELD THAT:- The appellant have not based their argument on as to how they have conformed to the KYC norms while interacting with their customers. They have not submitted any independent reliable documents to prove the genuineness of the where about of the clients. It is not their claim that they have produce so and so documents to defend their position. It is found that the appellants have also not submitted any cogent reasons as to how they permitted persons without “G” or “H” cards to handle the documents on their behalf. The proprietor of the appellant has accepted there lapses in the statement recorded before the customs officers. It is found that such statement has not been retracted. It was incumbent on the appellant-Custom Broker that they conduct all possible enquiries through independent reliable sources/ documents to verify the credentials of the clients. No such effort made by the appellant and no such document relied upon have been placed on record. Thus, they have failed to observe due diligence in this regard and thus ended up facilitating fake importers. Therefore, the appellant-Custom Broker has violated the provision of Regulation 11(a), (b), (d) and (e) of CBLR 2013 as held by the Learned Commissioner. The institution of customs brokers was created to facilitate the import export trade and at the same time to take care of the interest of Revenue. Thus, a great responsibility has been cast upon the Customs Brokers to exercise due diligence while conducting their business. There are no merits in the appeal - appeal dismissed.
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