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2015 (4) TMI 416 - CESTAT NEW DELHIWaiver of pre deposit - Fraudulent import of the electronics items - Misdeclaration and undervaluation of goods - Lifting of corporate veil - Held that:- Prima facie it appears that contemporaneous evidence gathered by DRI proved under valuation of goods imported and mis-declaration came to light. He had connived with the exporters and failed to adduce evidence to defend against the allegations made in Show Cause Notice. NIDB data used against the appellants brought out mis-declaration of value. Revenue also found that Shri K.S. Sultania had fabricated invoices with the abetment by exporters to cause evasion. He was involved in hawala deal. K.S. Sultania being proprietor of Ms/ Pearly Electronics and other 3 firms were created by him making benamidars proprietor thereof, Revenue lifted corporate veil in para 7(Vii) of Show Cause Notice at page 17 thereof. Duty was imposed on Pearl Electronics on its own imports as well as imports made in the name of other 3(three) dummy firms created by him, treating K.S. Sultania as the owner thereof. Penalty of ₹ 15.00 lakhs was imposed on Shri K.S. Sultania for contravention of provisions of law and penalty of ₹ 10.00 lakhs was also demanded from M/s Sultania & Co. finding involvement of his son in that firm. Appellants contention that joint and several liability is not permissible does not appeal to have basis. At this stage when corporate veil was lifted as stated above, there is no scope of grant waiver of pre-deposit. So also mis-declaration was based on evidence gathered by investigation. - Partial stay granted.
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