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3.2 Learned Advocate appearing for the appellants submitted that the appellants had not violated any of the Regulations under CBLR. In respect of Regulation 10(e), he stated that the appellant had exercised due diligence regarding the information to be declared in respect of imported goods. The subject bill of entry was filed on the basis of documents received from the importer and there was no mis- declaration with respect to invoice. However, the appellants were not aware of the cargo concealed behind the declared goods. Thus he claimed that the appellants have not violated Regulation 10(e). Further, he stated that all the documents relating to import were received through e-mail on 21.02.2022 from M/s Ninai shipping agency, who is the intermediary through whom they got the business. The documents such as Aadhaar card, Permanent Account Number (PAN), Import Export Code (IEC), Goods and Service Tax Identification Number (GSTIN), Certificate issued by the bankers i.e., ICICI bank; MSME Certificate have been examined, verified which enabled them to identify their client at the declared address, and this was acceptable as having done verification of the client by using reliable, independent, authentic documents, data or information. Further, Shri Abdur Rehman Dalvi, authorized representative of the appellants along with one agent/sub-agent Shri Sambhaji Bosale have also personally visited the importer's premises at Satara, Maharashtra on 13.02.2022 before accepting the client by the appellants. The appellants had cooperated with customs investigation and the importer had also given his statement before the customs authorities explaining the concealment planned with the help of one Shri Chetan Yadav, working in M/s Ninai Shipping Agency and the appellants were not aware of the said concealment. He further stated that the Shri Abdul Rehman Dalvi, authorised representative of the appellants had given his statement before customs authorities mentioning that Shri Mustaqeem Siddiqui, 'H' card holder of the appellants CB was present before whom 100% Customs examination of the imported goods was C/85104/2023 conducted which is a crucial evidence to prove their non-involvement. Hence, the Advocate pleaded that there was no violation of Regulations 10(n), 13(3), 13(4) and 13(12) of CBLR, by the appellants and the impugned order be set aside.

"Regulation 10. Obligations of Customs Broker: -

A Customs Broker shall -

xxx xxx xxx xxx

(e) exercise due diligence to ascertain the correctness of any information which he imparts to a client with reference to any work related to clearance of cargo or baggage;

xxx xxx xxx xxx

(n) verify correctness of Importer Exporter Code (IEC)number, Goods and Services Tax Identification Number (GSTIN), identity of his client and functioning of his client at the declared address by using reliable, independent, authentic documents, data or information;

C/85104/2023 12.1 We further find from the records, that the appellants have verified the existence of the importer through the certificate of Importer-Exporter Code issued by the Ministry of Commerce, DGFT indicating the name of the importer along with address, name of the proprietor; Permanent Account Number (PAN) card of the proprietor; GST Registration Certificate GST REG-06 indicating the GST Registration No. and address of the principal place of business having been verified by Sales Tax Officer, Maharashtra State VAT/Sales Tax authorities; Aadhaar Card of the proprietor Shri Krishnat Shankar Kadam; UDYAM Registration certificate issued by the Ministry of Micro, Small and Medium Enterprises; letter of ICICI bank dated 17.11.2021, in their letter head certifying the maintaining of current account held by importer with their bank at Satara main branch.

12.2 We find that CBIC had issued instructions in implementing the KYC norms for verification of identity, existence of the importer/exporter by Customs Broker in Circular No. 9/2010-Customs dated 08.04.2010, the extract of the relevant paragraph is as given below:

"(iv)Know Your Customs (KYC) norms for identification of clients by CHAs:

6. In the context of increasing number of offences involving various modus-operandi such as misuse of export promotion schemes, fraudulent availment of export incentives and duty evasion by bogus IEC holders etc., it has been decided by the Board to put in place the "Know Your Customer (KYC)" guidelines for CHAs so that they are not used intentionally or unintentionally by importers/exporters who indulge in fraudulent activities. Accordingly, Regulation 13 of CHALR, 2004, has been suitably amended to provide that certain obligations on the CHAs to verify the antecedent, correctness of Import Export Code (IEC) Number, identity of his client and the functioning of his client in the declared address by using reliable, independent, authentic documents, data or information. In this regard, a detailed guideline on the list of documents to be verified and obtained from the client/customer is enclosed in the Annexure. It would also be obligatory for the client/customer to furnish to the CHA, a photograph of himself/herself in the case of an individual and those of the authorised signatory in respect of other forms of organizations such as company/trusts etc., and any two of the listed documents in the annexure.