TMI BlogCustom broker is not responsible for overseeing the correctness of documents issued by Government AuthoritiesX X X X Extracts X X X X X X X X Extracts X X X X ..... Custom broker is not responsible for overseeing the correctness of documents issued by Government Authorities - By: - CA Bimal Jain - Customs - Import - Export - SEZ - Dated:- 16-12-2022 - - The Customs Excise and Service Tax Appellate Tribunal, New Delhi ( the CESTAT ) in the cases of M/S SURYA JYOTI GLOBAL LOGISTICS, M/S HARI MOHAN DWIVEDI AND M/S RAJINDER P. KAPUR VERSUS COMMISSIONER OF ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CUSTOMS, (AIRPORT GENERAL) NEW DELHI - 2022 (12) TMI 483 - CESTAT NEW DELHI held that custom brokers are not responsible for overseeing the correctness of the documents provided by the client issued by government authorities for verification of the exporters as per Regulation. Facts: M/s. Surya Jyoti Global Logistics, M/s. Hari Mohan Dwivedi and M/s. Rajinder P. Kapur (collective ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly referred to as Custom Brokers or the Appellants ) were clearing goods on behalf of exporters. A few of exporters were later categorized as risky exporters by the Directorate General of Analytics and Risk Management of the Central Board of Excise Customs ( DGARM of CBEC ) and respective jurisdictional Commissionerate of Customs ordered concerned customs officers to conducted physical ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... verification of business premise of such risky exporters. Subsequently, on physical verification it was found that such exporters did not operate from registered premise. It was concluded that such exporters did not exist at all. Show Cause Notices ( SCNs ) were issued to the Appellants alleging that they had not fulfilled their obligation under Regulation 10(n) of the Custom Broker Licensing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Regulations, 2018 ( the CBLR ). Thereafter, on June 10, 2021 Commissioner of Customs ( the Respondent ) passed Orders In Original ( the OIO ) against the Appellants whereby license of custom brokers were revoked and security deposit were forfeited and penalty were imposed. The Appellants contended that they had complied with the Regulation 10(n) of the CBLR as they have verified the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... document issued by the independent parties including government department such as the Goods and Services Tax Identification Number ( the GSTIN ), Importer Exporter Code ( IEC ) for verification of exporters as per Regulation 10(n) of the CBLR . Aggrieved by the order passed by the Respondent the Appellants filed Custom Appels before the CESTAT. Issue: Whether custom brokers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were responsible for ensuring the correctness of the documents issued by the authorities which were relied upon by them for the purpose of verification as per Regulation 10(n) of the CBLR ? Held: The CESTAT held that: There is nothing in the Regulation 10(n) of the CBLR which requires Custom Brokers to check if the exporter is risky in the opinion of any officer or to obtai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n NOC certificate for confirming exporter is bona-fide. Further, Custom Broker were not responsible for checking the correctness of the documents on which they have relied, issued by government authorities. CESTAT allowed the appeal and set aside the impugned Orders. Relevant Provisions Regulation 10(n) of the CBLR A custom broker shall verify correctness of Importe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 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. (Author can be reached at info@a2ztaxcorp.com ) - - Scholarly articles for knowledge sharing authors experts professionals Tax Management Ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ia - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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