CB should Verify Correctnedd of IEC number and GST Identification Number of Goods during Import in accordance with Regulation 10(n) of CBLR: CESTAT [Read Order]

The Chandigarh bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that the Customs Broker (CB) had an obligation to verify the correctness of Importer 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 defined under regulation 10(n) of the Customs Broker License Regulations (CBLR), 2018. 

Safe Cargo Clearing Services, the appellant assessee holds a Custom broker license and was permitted to work as a custom broker at various customs stations the assessee appealed against the order passed by the Commissioner (Appeals) for revoking the Custom Broker Licence of the appellant under Regulation 17 of CBLR and imposition of penalty of Rs. 50,000/- under Regulation 18 read with Regulation 14 of CBLR. 

Sudhir Malhotra and Kanika Malhotra, the counsels for the assessee contended that the order revoking the CHA license forfeiting the security amount, and imposing the penalty of Rs. 50,000/- are not sustainable in law as the same had been passed without properly appreciating the facts and the law and custom broker regulation. 

Also submitted that a custom broker was not involved in the clandestine removal of the goods from the port with the connivance of customs officers. 

Rajeev Gupta, Swati Chopra, and Ravinder Jangu, the counsels for the department relied on the decisions made by the lower authorities and contended that Custom Broker had been found involved in a case of fraudulent import. 

The Bench observed that the customs broker had to verify the correctness of the importer-exporter code (IEC) number, goods and services tax identification number (GSTIN), identify his client and functioning of his client at the declared address by using reliable,independents, authentic documents, data, or information.  The two-member bench comprising S.S Garg (Judicial) and Anjani Kumar (Technical) held that the assessee had not performed his duty with due diligence and utmost efficiency.

To Read the full text of the Order CLICK HERE

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