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TMI Blog2024 (12) TMI 1318X X X X Extracts X X X X X X X X Extracts X X X X ..... e processed documents for Customs clearance for export on behalf of M/s. TEAC Engineering during July 2021. As per Intelligence report, DRI intercepted the consignments and during investigation, it is found that the exporter was attempting to export Red Sanders, illegally. During investigation it is found that the very same exporter had exported the goods against 5(five) shipping Bills and out of that, they have taken assistance from M/s UDL Logistics for exporting 3(three) consignments and 2(two) consignments were attempted for export through the Appellant-Customs Broker. Proceedings were initiated and the Adjudication Authority as per the impugned order held that appellant violated Regulation 10 (e) and 10 (n) of CBLR 2018. Hence revoked ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... documents; under these circumstances the impugned order is illegal and unsustainable. 4. The Learned counsel for the appellant to rebut the allegation of failure to exercise due diligence in verifying KYC of the exporter and the correctness of the goods to be exported has required under regulation 10(e) and 10(n) of CBLR, 2018 relied on the following decisions. a. M/s. HIM Logistics Pvt. Ltd. Vs.. Commissioner of Customs, New Delhi 2016(338) ELT 725 (Tri.-Del.) - wherein it is held that absence of physical verification of the importer/exporter is not an infraction as the same is not a legal requirement. b. M/s. Delta Infralogistics Vs. CC., Bengaluru, vide Final Order No. 20821/2019 dated 25.09.2019- Ratio expounded is proportionality ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s for export. Learned AR also reiterated the findings of the Adjudication Authority and produced the copy of Final Order No. 20036/2024 dated 09.01.2024 and submits that on the very same issue of illegality committed by the very same exporter, proceedings against the Customs broker were challenged. 5. We have gone through the facts of the case and also the decisions relied by the Learned AR. It is an admitted fact that the exporter had produced the KYC documents, and the appellant verified the documents, online. Thus, the allegation regarding violation of Regulation 10 (e) of CBLR 2018 is unsustainable. However, regarding violation of Regulation 10 (n) of CBLR 2018, there was an act of negligence on the part of appellant to accept the docu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penalty under Section 114, 114(AA) of the Customs Act, 1962. Before completion of the adjudication proceedings of the above show-cause notice, another show-cause notice No.5/22 dated 10.10.2022 was adjudicated, which is now before us. The Commissioner in the impugned order observed that "I agree with the Customs Broker's submission that they are not supposed to physically verify the address of the importer/exporter as the same is not a legal obligation on the part of the CB to fulfil. Further, I also agree with the CB that as per the provisions of the Regulations of CBLR, 2018, their job is to verify the genuineness of the exporter/importer, their GSTIN and not the goods. I am also of the opinion that they are not expected to check the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the main show-cause noticed dated 24.1.2022, which deals with the main culprits should have been adjudicated along with the present notice. In view of the above, we find no reason for revoking the license of the appellant and for forfeiture of the security deposit. Therefore, we set aside the revocation of license and forfeiture of the security deposit." 7. In view of the above discussions, we set aside the revocation of license and forfeiture of the security deposit. However, considering the violation of Regulation 10 (n) of CBLR 2018, we find that the penalty of Rs.50,000/- imposed on the Appellant under CBLR, 2018 is reasonable and tenable. 8. Accordingly, the impugned order is modified by setting aside the order of revocation of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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