The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) said that the Custom Broker to verify genuineness of importer-exporter code, IEC number, identity of client to prevent facilitation of export prohibited goods.
The appellant, M/s CSB Logistics is a custom broker under Regulation 11 of CBLR, 2013 to verify antecedent and correctness of import export code, identity of the client and existence of their client at the declared address by using reliable independent authentic documents, data or information. It is a matter of record that the appellant never met the exporters/ owner of M/s Fashion World of the alleged consignment. Thus, this appellant failed to verify the antecedent of the exporter and or fulfilling the KYC norm under Regulation 11 of the CBLR, 2013.
The coram of Judicial Member, Anil Choudhary ruled that as a custom broker deals with documents and details of export or import consignment for clearance, and is the representative of their client importer or exporter, before the customs. Accordingly (CSB Logistics), are liable for penal action under Section 114 of the Act.
“The appellant M/s CSB Logistic (Custom Broker) was duty bound as a Custom Broker under the Regulation of 2014 to verify antecedents and genuineness of the importer exporter code, IEC number, identity of their client and functioning of their client at the declared address by using reliable, independent and authentic documents/ data/ information. As per the facts on record, the Custom Broker did not meet the exporter or the owner of the said Fashion World or the mastermind Reyaz Ahmed alias Rajbir alias Dharmendra, the person who originated the goods for exporter, which were prohibited. Thus, their negligence has facilitated the mischievous exporter in attempting to export prohibited goods. Further, they have similarly facilitated the export of about eight consignments in the recent past and there is reasonable belief that such consignments also had prohibited goods,” the CESTAT said.
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