Order Date – 27 February 2023

Parties: Shri Pardeep Kumar Seth Vs Commissioner of Customs, New Delhi

Facts –

• The Appellant, Shri Pardeep Kumar Seth, is a Customs Broker whose license was revoked under Customs Brokers Licensing Regulations, 2018 and the security deposits made by it was forfeited and penalty was imposed on it on the ground that it had violated Regulation 10(n) of CBLR 2018.
• It was claimed by the appellant that the SCN itself had no evidence to support it.

Issue –

• Whether the appellant had violated Regulation 10(n) of CBLR 2018?

Order –

• The Tribunal observed that verification of certificates part of the obligation under Regulation 10(n) on the Customs Broker is fully satisfied as long as it satisfies itself that the IEC and the GSTIN were indeed, issued by the concerned officers. This can be done through online verification, comparing with the original documents, etc. and does not require an investigation into the documents by the Customs Broker.
• If there are documents issued by the Government officers which show that the client is functioning at the address, it would be reasonable for the Customs Broker to presume that the officer is not wrong and that the client is indeed, functioning at that address.
• The SCN does not rely on anything but an email said to be sent by the DGARM indicating a list of suspicious exporters. It cannot be a substitute for evidence.
• Hence there is no evidence to support the allegation that the Customs Broker violated Regulation 10(n). Hence, the revocation of its licence, forfeiture of the Security deposit and imposition of penalty cannot be sustained.