Customs Broker Not Responsible If Client Moves To New Premises After Verification Of Address Is Complete: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that customs broker not responsible if client moves to new premises once verification of address is complete. “The responsibility of the Customs Broker under Regulation 10(n) does not include keeping a continuous surveillance on the client to ensure that he continues to operate from that address and has not changed his operations. Therefore, once verification of the address is complete, if the client moves to a new premises and does not inform the authorities or does not get his documents amended, such act or omission of the client cannot be held against the Customs Broker” stated the Bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member). The assessee/appellant had a Customs Broker licence valid up to 05.06.2024 issued by the Commissioner of Customs (Airport & General), New Delhi. The Joint Director, Directorate General of Analytics and Risk Management, New Delhi had conducted an analysis of the data of the GST registrants and identified risky exporters who may have been involved in IGST refund frauds. DGARM also identified the Customs Brokers who handled exports of such exporters including the assessee. DGRAM got the existence of some of these exporters verified from field formation and found that they were not existence. Based on the analysis, DGARM wrote to the concerned commissioners including the Commissioner, Customs/respondent to take action under the Customs Broker Licensing Regulations. Accordingly, a show cause notice was issued by the Commissioner, Customs/respondent which culminated in the impugned order. The assessee submitted that even if the exporter was found non-existent at the address, the assessee had verified their existence on the basis of the documents issued by the Government Office and he cannot be held accused of violation Regulation 10(n) of Customs Broker Licensing Regulations, 2018. The bench opined that “the onus on the Customs Broker cannot, therefore, extend to verifying that the officers had correctly issued the certificate or registration. Of course, if the Customs Broker comes to know that its client has obtained these certificates through fraud or misrepresentation, nothing prevents it from bringing such details to the notice of Customs officers for their consideration and action as they deem fit. However, the Customs Broker cannot sit in judgment over the certificate or registration issued by a Government officer so long as it is valid.” The impugned order is not correct in concluding that the Customs Broker has violated Regulation 10(n) because the exporter was found to not exist during subsequent verification by the officers, added the bench. In view of the above, the Tribunal allowed the appeal and set aside the order. Case Title: M/s Akanksha Global Logistics Pvt. Ltd. v. Commissioner, Customs-New Delhi Case Number: CUSTOMS APPEAL NO. 51269 OF 2023 Counsel for Appellant/ Assessee: G. S. Arora Counsel for Respondent/ Department: Girijesh Kumar Click Here To Read/Download The Order

Customs Broker Not Responsible If Client Moves To New Premises After Verification Of Address Is Complete: CESTAT

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Customs Broker Not Responsible If Client Moves To New Premises After Verification Of Address Is Complete: CESTAT

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