Legal principle

A Customs Broker fulfils Regulation 10(n) by verifying the client's IEC, GSTIN, identity and declared address through reliable, independent, authentic documents such as government-issued GSTIN and IEC; physical verification of premises and continuous surveillance of the client are not required, and responsibility for a wrongly issued registration lies with the issuing officer, not the broker.

Court decision

The Tribunal held there was no evidence that the appellant violated Regulations 10(d), 10(e) or 10(n) of the CBLR, 2018; it set aside the impugned order, allowed the appeal with consequential relief, and directed that the appellant's licence be restored forthwith. The proportionality question did not arise for decision as no violation was found.

Facts

M/s ATR Logistics India Pvt Ltd, a Customs Broker licensed under the CBLR, 2018, filed shipping bills for two exporters, M/s M J Expo Trade India and M/s Roomwell Tradex Pvt Ltd, whose exports involved incentive schemes such as RoDTEP and ROSCTL. DGARM's data analysis flagged these exporters as risky, and jurisdictional GST officers' physical verification found them non-existent at their declared business premises. The Commissioner, after a SCN dated 18.9.2024 and an inquiry under Regulation 17 before an appointed Inquiry Officer (which the appellant did not attend, though it filed a written reply and appeared at the personal hearing), held the broker violated Regulations 10(d), 10(e) and 10(n). The impugned order dated 12.3.2025 revoked the licence, forfeited the security deposit and imposed a penalty of Rs. 50,000/-, the department citing 19 shipping bills with FOB value of Rs. 3,23,23,201/- and potential wrongful export benefits.

Key provisions

• Regulation 10(n), Customs Brokers Licensing Regulations, 2018 — Obligations of Customs Broker
• Regulation 17, Customs Brokers Licensing Regulations, 2018 — Procedure for revoking license or imposing penalty