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35.6 Inquiry report dated 16.09.2021 was received and the charges framed against CB i.e., violation of Regulation 10(a), 10(d), 10(e), 10(m) and 10(n) of the CBLR, 2018 were held 'Proved' in the Inquiry Report.
36. I now examine the charges in the SCN sequentially. It has been alleged that CB did not exercise due diligence in discharging their obligation as required under Regulation 10(a), 10(d), 10(e), 10(m) and 10(n) of the CBLR, 2018.
36.1 In respect of Regulation 10(a) of CBLR 2018 it has been alleged that the CB shall obtain an authorisation from each of the companies, firms or individuals by whom he is for the time being employed as a Customs Broker and produce such authorisation whenever required by the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be. It is noticed that during course of investigation it was revealed that as per statement Shri Mohammed Arfat Mehmood Mukadam, Director and G-Power of Attorney holder of the Customs Broker M/s. Hayatt Shipping Pvt. Ltd. recorded on 06.08.2018, under Section 108 of the Customs Act, 1962, he admitted that he got the documents from a person by name Shri Irfan Ismail Popatiya, who was introduced by his friend Shri Santosh Gunjal. Shri Mohammed Arfat Mehmood Mumkadam further stated that he personally verified the address of Shri Sahdeo Bapurao Rade, Proprietor of M/s. Global Enterprises. However, IEC holder Shri Sahdeo Bapurao Rade, proprietor of M/s. Global Enterprises has denied that he had applied for any Importer Exporter Code (IEC).Shri Sahdeo Bapurao Rade further stated that he has not authorized anybody to carry out any import-export business in his name. Hence, it is clear that Shri Sahdeo Bapurao Rade, proprietor of M/s. Global Enterprises has not authorized the CB M/s. Hayatt Shipping Pvt. Ltd., CB No. 9 C/85501/2022 11/396. Therefore, I hold that the CB failed to fulfill the obligation of Regulation 10(a) of CBLR, 2018.
36.2 In respect of Regulation 10(d) of CBLR 2018 it has been alleged that a Customs Broker shall advise his client to comply with the provisions of the Act, other allied Acts and the rules and regulations thereof, and in case of non- compliance, shall bring the matter to the notice of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be. As per statement of Shri Sahdeo Bapurao Rade, proprietor of M/s. Global Enterprises was recorded on 08.08.2018, under Section 108 of the Customs Act, 1962 he did not apply for any Importer- Exporter Code (IEC). According to this statement neither he ever has any business interest in M/s. Global Enterprises nor was he aware of M/s. Global Enterprises. It was also added that he has not given any authorization or Power of Attorney to anybody to operate business activities of M/s. Global Enterprises. He also claimed that he was not the proprietor of M/s. Global Enterprises and not aware of its business or functioning. In the Statement Shri Mohammed Arfat Mehmood Mumkadam, Director and G- Power of Attorney holder of the Customs Broker recorded on 06.08.2018, he inter alia admitted that he got the documents from a person by name Shri Irfan Ismail Popatiya, who was introduced by his friend Shri Santosh Gunjal. From this, it is evident that Shri Sahdeo Bapurao Rade, proprietor of M/s. Global Enterprises never authorized the CB M/s. Hayatt Shipping Pvt. Ltd., and Shri Mohammed Arfat Mehmood Mumkadam, Director and G-Power of Attorney holder of the Customs Broker M/s. Hayatt Shipping Pvt Ltd., never met Shri Sahdeo Bapurao Rade. It is on record that there was no interaction between the Customs Broker and the Shri Sahdeo Bapurao Rade, proprietor of M/s. Global Enterprises so that the Customs Broker could give proper advice. Hence, I hold that the CB failed to fulfill the obligation of Regulation 10(d) of CBLR, 2018.
36.5 In respect of Regulation 10(n) of CBLR 2018 it has been alleged that the CB did not verified 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 It is observed from record that the CB M/s. Hayatt Shipping Pvt. Ltd., 11 C/85501/2022 CB No. 11/396 failed to verify correctness of Importer Exporter Code (IEC) number, Goods and Services Tax Identification Number (GSTIN), identity and functioning of M/s. Global Enterprises at the declared address by using reliable, independent, authentic documents, data or information. Statement Shri Mohammed Arfat Mehmood Mukadam, Director and G-Power of Attorney holder of the Customs Broker M/s. Hayatt Shipping Pvt. Ltd. was recorded on 06.08.2018, under Section 108 of the Customs Act, 1962, wherein he admitted that he got the documents from a person by name Shri Irfan Ismail Popatiya, who was introduced by his friend Shri Santosh Gunjal. Shri Mohammed Arfat Mehmood Mukadam further stated that he personally verified the address of Shri Sahdeo Bapurao Rade, Proprietor of M/s. Global Enterprises whilst the IEC holder Shri Sahdeo Bapurao Rade, proprietor of M/s. Global Enterprises has denied of having applied for any Importer Exporter Code (IEC), Shri Sahdeo Bapurao Rade further stated that he has not authorized anybody to carry out any import-export business in his name. Shri Santosh Kashiram Kadam in his statement recorded on 31.08.2018 under Section 108 of the Customs Act, 1962 inter alia stated that he does not know M/s. Global Enterprises (Service Tax Registration Number AHAPK2065NSD001) and does not have any relation/concern/business transaction with it; that there is no office of M/s. Global Enterprises (Service Tax Registration no. AHAPK2065NSD001) in his residential address at BEST quarter at C/10, BEST Staff Quarter, Jerbai Wadala Road, Near Cancer Society, Parel, Mumbai, Maharashtra - 400012. From this it became evident that the CB M/s. Hayatt Shipping Pvt. Ltd. CB No (11/396) have not been careful and not diligent in undertaking the KYC of the background of M/s. Global Enterprises and accepted documents from the persons who were neither importer nor authorized representative of the importer and miserably failed to verify the authentic and genuineness of the bogus importer M/s. Global Enterprises. Hence, I hold that the CB failed to fulfill the obligation of Regulation 10(n) of CBLR, 2018."