Bablani Clearing Forwarding & Logistics Co. Pvt. Ltd. Vs Principal Commissioner of Customs (General) (CESTAT Mumbai)
CESTAT Mumbai Overturns Customs Broker License Revocation, Finds No CBLR Violation for Verification Through Intermediary
Customs, Excise and Service Tax Appellate Tribunal (CESTAT) Mumbai has set aside an order by the Principal Commissioner of Customs (General) that revoked the Customs Broker (CB) license of M/s Bablani Clearing Forwarding & Logistics Company Private Limited and imposed penalties. The Tribunal ruled that the Customs Broker did not violate the Customs Brokers Licensing Regulations (CBLR), 2018, when verifying Know Your Client (KYC) details and processing documents received through an intermediary, provided the necessary due diligence was performed based on available documents.
The appeal challenged an Order-in-Original dated March 8, 2024, which had revoked the appellant’s CB license (No. 11/238), forfeited their security deposit, and imposed a penalty. The action against Bablani Clearing Forwarding & Logistics Co. Pvt. Ltd. stemmed from an investigation report from December 15, 2022, alleging that two Shipping Bills (S/Bs) filed in November 2016 for an exporter, M/s Neminath Industries, involved fake or non-genuine Factory Stuffing Permissions (FSPs) and altered invoices. Further investigation revealed that out of 1474 S/Bs filed by five exporters, 1090 used forged FSPs and documents, suggesting the appellant CB facilitated fraudulent exports to avail undue drawback and export incentives.
