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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, Cus.Appeal No./75665 of 2022 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.

10. The Appellants contended that as per the Annexure to the above circular No. 9/2010 dt. 8.4.2010, they have obtained all the documents and hence they have not violated any of the provisions of Regulation 10(n) of the CBLR, 2018.

11. The case of the Revenue is that since these firms were found to be not functioning from the registered premises when physically verified by the Departmental officers, they never existed in the first place and it was the obligation of the appellant as a Customs Broker to "verify correctness of Importer Exporter Code (IEC) number, Goods and Service 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" as provided in Regulation 10(n) of the CBLR 2018.The Departmental Representative argued that as the appellant failed to discharge this obligation they are liable for the consequences of revocation of their licence, forfeiture of the security deposit and imposition of penalty. The Departmental Representative cited the CBIC Circular No. 9/2010-Customs dated 8.4.2010 giving KYC guidelines and argued that the appellant failed to exercise due diligence and grossly violated the KYC guidelines of the said Circular dated 8.4.2010 read with CBLR, 2018 as number of exporters facilitated by the CB have been found to be untraceable. As per the mandate of Regulation 10(n) of the CBLR, 2018 read with the Circular no. 9/2010-customs dated 8.4.2010, it was incumbent upon the CB to verify the identity and functioning of his client at the declared address by using reliable, independent, authentic documents, data or information which the CB have failed to do. Accordingly, they argued that the order passed by the Ld Principal Commissioner of Customs is sustainable.

Cus.Appeal No./75665 of 2022

16. Regulation 10(n) of CBLR 2018 assigns certain responsibilities to the CB. For the sake of easy reference, the said Regulation reproduced below:

"10. Obligations of Customs Broker- A Customs Broker shall-

....(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.,"

We have to examine whether the CB has complied with the provisions of the above said regulation. We find that the Tribunal has examined the scope of these obligations in the case of M/S Anax Air Services Pvt Limited Vs Commissioner of Customs, (Airport and General), New Delhi. The facts of the present case are squarely covered by the aforesaid decision of the Tribunal. The relevant portion of the order is reproduced below:

"22. We now proceed to examine the scope of the obligations of the Customs Broker under Regulation 10(n). It requires the Customs Broker to 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. This obligation can be broken down as follows: