Commissioner Of Customs Vs Shakti Cargo Movers (Delhi High Court)
Delhi High Court held that it was not necessary for the Custom Broker to keep a continuous surveillance at the physical address of an exporter. Thus, customs broker license was revoked.
Facts- The present appeal is filed by the revenue. Notably, the respondent is a Custom Broker. It was alleged that certain exports facilitated by the respondent which were made by the exporters, who are allegedly found to be non-existent at their principal place of business.
It is the case of the respondent that it had performed its functions diligently and had obtained the KYC documents from the concerned exporter namely M/s Shree Enterprises. However, the Commissioner of Customs found to the contrary and held that the respondent had not collected the relevant KYC documents as required. Accordingly, the Commissioner of Customs proceeded to pass the said order in original dated 17.10.2023, revoking the respondent’s licence. However, CESTAT set aside the said order.
Conclusion- Held that it was not necessary for the Custom Broker to keep a continuous surveillance at the physical address of an exporter. The KYC documents are required to be obtained at a time when a particular entity is on boarded as a client of the Custom Broker. It is also necessary for the Custom Broker to periodically verify the same. Plainy, the rent agreement and the electricity bill could not be considered to be stale or were required to be disbelieved. Thus, the impugned order setting aside the order-in-original dated 17.10.2023 cannot be faulted.
