Case Law Details
Prabhu Shipping Systems Vs Commissioner of Customs (CESTAT Chennai)
Facts- The appellant, a licensed Customs Broker, is aggrieved by the OIO dated September 25, 2020 passed by the Commissioner of Customs, Chennai holding that the appellant had contravened Regulations 10(b), 10(d), 10(k), 10(n) and 13(12) of the Customs Brokers Licensing Regulations, 2018 and revoking the appellant’s licence under Regulation 14 read with Regulation 17. The security deposit furnished by the appellant was also forfeited and a penalty of Rs.50,000/- was also imposed upon the appellant under Regulation 18 of CBLR, 2018.
Mainly, no KYC documents which are claimed to have been received by the appellant were produced before the lower authorities or even before the present court.
Conclusion-
The appellant or its employee has not conducted any due diligence measures. They claimed to have obtained KYC documents through email but have failed to produce them either before the Inquiry officer or at any stage. The irresistible conclusion can only be that they have no such documents and also no idea of who the exporter was and simply filed a Shipping Bill heavily over-invoicing the goods. Held that revocation of customer broker licence due to non-production of KYC of the exporters is sustainable in law.
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