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4. Lack of Verification: Shri Vinod Kumar Sharma, the Proprietor and F-card holder of the CB firm M/s V.S. Bhagwati Shipping, in his statement, interalia stated that the documents such as Customer Information Sheet, undertaking regarding truthfulness and authenticity of SAFTA certificate & authority letter to Customs relating to consignments of Black Peppers imported in the name of M/s. T.G. Enterprise were not signed by the Proprietor, M/s. T.G. Enterprise, Ahmedabad and the signature on the said documents was different from the signature on the PAN card submitted by the Proprietor, M/s. T. G. Enterprises. Hence, it is clear that he failed to verify the KYC, antecedent, correctness of Importer Exporter Code (IEC) number, identity and functioning of his clients viz. M/s R. M. International, Ahmedabad, M/s. T. G. Enterprise, Ahmedabad & M/s. M. M. Enterprise, Ahmedabad at the declared addresses and hence it was alleged that CB contravened Regulation 10(n) of the CBLR, 2018 (read with Regulation 11(n) of erstwhile CBLR, 2013).

In these circumstances we did not find any merit in confirmation of charge under Regulation 10(d) and 10(e)of the CBLR 2018. The same is therefore liable to be dropped.

Customs Appeal No. 51930 of 2022 [DB] 6.12 The next charge upheld against the appellant relates to violation of Regulation 10(n) of the CBLR,2018. The Regulation10(n) reads as follows:

"The Custom Broker shall 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."

6.13 The adjudicating authority below has held that the CB did not verify the KYC, antecedent, correctness of importer exporter code (IEC) number, identity and functioning of his clients at the declared address and thus the CB has failed to perform duties casted upon him under the provisions of Regulation 11(n) of CBLR, 2018. From the above provision, we find that the obligation of CB under Regulation 10(n) can be summarized as follows : 

            (a)    Verify the correctness of IEC number
            (b)    Verify the correctness of GSTIN
            (c)    Verify   the   identity   of    the     client   using    reliable,
Provided that such document is substantially in the form and purports to be executed in the manner directed by law in that behalf. The Court shall also presume that any officer by whom any such document purports to be Customs Appeal No. 51930 of 2022 [DB] signed or certified, held, when he signed it, the official character which he claims in such paper."
6.15 We find that Regulation 10(n) nowhere extends the responsibility of the CB to physically going to the premises of each of the importers to ensure that they are functioning at the premises. When a Government officer issues a certificate or registration with an address to an Importer, the Customs Broker cannot be faulted for trusting the certificates so issued. It is otherwise not the case of department that IEC etc. of the importers herein were forged. Infact all the importers were found existing and they even joined the investigation and admitted appellant to be their CB for clearance of impugned imports. It has been held by the High Court of Delhi in the case of Kunal Travels [2017 (3) TMI 1494-Delhi High Court = 2017 (354) E.L.T. 447 (Del.)] that "the CHA is not an inspector to weigh the genuineness of the transaction. It is a processing agent of documents with respect of clearance of goods through customs house and in that process only such authorized personnel of the CHA can enter the customs house area......... It would be far too onerous to expect the CHA to inquire into and verify the genuineness of the IE code given to it by a client for each import/export transaction. When such code is mentioned, there is a presumption that an appropriate background check in this regard i.e., KYC, etc. would have been done by the customs authorities......." (Emphasis Supplied).