Case Law Details
Sinha Shipping Agency Vs Commissioner of Customs (CESTAT Kolkata)
Introduction: In a recent ruling, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) Kolkata addressed the compliance of Sinha Shipping Agency, a Customs Broker, with Regulation 10 (n) of the Customs Broker Licensing Regulations, 2018 (CBLR). The case, titled “Sinha Shipping Agency vs Commissioner of Customs,” delves into the obligations of a Customs Broker regarding the verification of client information, specifically the correctness of the importer’s address.
Detailed Analysis: The appeal stems from an action initiated against Sinha Shipping Agency by the Commissioner of Customs (Airport & Admn), Kolkata. The primary allegation was a violation of Regulations 10 (d), 10 (m), and 10 (n) of the CBLR, 2018. The Customs Broker undertook an import assignment for M/s SGW Enterprises, where discrepancies in the importer’s address came to light during investigations.
Regulation 10 (n) mandates Customs Brokers to verify the correctness of Importer Exporter Code (IEC) number, Goods and Services Tax Identification Number (GSTIN), identity of the client, and the functioning of the client at the declared address using reliable, independent, authentic documents, data, or information.
The appellant argued that they duly verified Know Your Customer (KYC) documents, including the IEC, with the bank, adhering to CBEC Circular No.09/2010-Cus. Despite 100% examination of the import consignments and no mis-declaration found, the Department alleged that the importer’s address was incorrect.
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