Case Law Details
Baid International Services Ltd. Vs Commr. of Customs (Airport & Air Cargo Complex Commissionerate) (CESTAT Kolkata)
CESTAT Kolkata held that Customs Broker cannot be held responsible for the exporters found to not exist during subsequent verification undertaken by the officers. Accordingly, revocation of Customs Broker licence unjustified.
Facts- The Appellant is a licensed Customs Broker. The license of the appellant was suspended under Regulation 16(1) of Customs Brokers Licensing Regulations 2018, (CBLR). The said suspension was challenged by them on the ground that it was based on erroneous and untenable facts in law. Subsequently, a Show Cause Notice was issued under Regulation 17(1) of CBLR for the revocation of the licence on the ground that the appellant had filed about 121 Shipping Bills pertaining to 15 exporters and who had violated various provisions of CGST Act, 2017 and they availed GST credit of approximately Rs. 8 crore by not complying with the CGST, laws and procedure.
The appellant submits that there has been no allegation, nor does the order charge the appellant for committing any offence under the Provisions of the Customs Act, 1962, in relation to various exports which were caused through the agency of their license. The appellants contend that the offence committed by the various exporters was extraneous to their (the appellant) functions as a Customs Brokers.
Conclusion- The responsibility of the Customs Broker as held by judicial bodies does not require then to maintain vigil and continuous surveillance on the client to ensure that they continue to operate from the address as given in the various KYC documents and in case of change as such get the documents amended.
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