Suspension of license on failure to follow CBLR: CESTAT directs Suspension to be lifted Till Final Decision after Inquiry [Read Order]

Customs Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata directed suspension to be lifted without prejudice to final decision after inquiry on suspension of license on failure to follow Custom Brokers License Regulation 2018.

On the basis of above investigation revenue came to the conclusion that the appellant, M/s United Custom House Agency Pvt Ltd has failed to follow the provisions of Custom Brokers License Regulation 2018. It was alleged that the appellant failed to follow regulation 10(d) by failing to bring the non-compliance by the importer to the knowledge of DC or AC. It was alleged that the appellant had never met the importer directly and therefore, was never in a position to advice his client.

Regulation 10 (d) obliges a Custom Broker to advice his clients to comply with the provisions of the Cu Regulation 10(n) obliges the custom broker to verify correctness of importer/exporter (IEC) number, GSTIN Number, to identify of his client and functioning of his client at the declared address by using reliable, independent, authentic documents, data or information. It was alleged that the appellant had not verified the registered address of Importer before taking up the jobs, as Custom Broker, for clearance of the said consignment.

The Counsels for the appellant, S M Akhtar and Mainak Bose submitted that t it cannot be the responsibility of the Custom Broker to actually go and physically verify the address of the importer. It also cannot be the responsibility of custom broker to indulge in investigation as to if the person approaching him is actual importer or otherwise and if this said person is financially capable of importing sustains. The appellant has conducted necessary verification on the website of GST and of DGFT with respect to IEC and GST Registration. It was also submitted on behalf of the appellant that GSTIN and IEC of the said importer are still valid and can be verified on the respective websites. In this background we can hardly find a fault with the appellant in failing to verify the address of the importer.

The Bench consisting of P K Choudhary, Judicial Member and Raju, Technical Member held that” We find that significant amount of time is lapse and whatever inquiry was necessary would have been completed now. In this background and looking at the gravity of offence we do not find any justification and continuing the suspension any more. In view of above we direct that the suspension may be lifted with immediate effect. Our findings and observations are purely interim and should not affect the final decision taken after the inquiry.”

To Read the full text of the Order CLICK HERE

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