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2017 (11) TMI 50 - AT - Customs100% EOU - diversion of duty free goods imported by it, into the local market - SCN was issued on 16.12.2004 making allegation of involvement of appellants in the aforesaid activities. They failed to defend on the allegations leading any cogent or credible evidence to the contrary. Therefore adjudication resulted in duty demand of ₹ 75,37,420/- for violation of condition of import. Penal consequence also arose in adjudication. Held that: - Investigation result brought out the premeditated design of Pinkesh Jain in connivance with Rakesh Jain, Dinesh Chunilal Parmar and Mangilal Jain to defraud the Government. Appellant firm misused the exemption notification meant for EOU and defeated the requirement of export of finished product from India. Although appellant firm was required to use the imported duty free goods cleared by it, in its EOU for manufacture of finished product and export the same, it diverted such goods to the local market and caused serious prejudice to Revenue. Penal provisions are enacted to suppress the evils of defrauding Revenue which is an anti-social activity adversely affecting the public revenue, earning of foreign exchange, economic and financial stability of the economy. Therefore such provisions are construed in a manner to suppress the mischief and to promote the object of the statute, preventing evasion, foiling artful circumvention thereof. Thus construed, the term fraud within the meaning of these penal provisions is wide enough to take into its fold any one or series of acts committed. Such act or acts when demonstrate to be reasonably proximate to the diversion of duty free imported goods fraudulently they should face adverse consequence of law. In view of the cogent and credible evidence came to record proving malafides of appellants as discussed above, result of investigation brought out their hand in glove to cause subterfuge to Revenue as well as adjudication findings remained unchallenged by them leading any evidence to the contrary, appellants fails to succeed in their appeal having caused detriment to the interest of public revenue. They could not rule out their ill will. Pre-ponderance of probability came to the rescue of Revenue lending credence to its case. Evidence gathered by Revenue provided reasonable basis for adjudication which could not be demolished by appellants by any means. They failed to lead any cogent evidence to rule out their role in commitment of the offence alleged when they failed to come out with clean hands, no immunity from penalty can be granted to them. Therefore irresistible conclusions that can be drawn is that Revenue having proved its case very successfully bringing out malafides of the appellants and their willful commitment of breach of law. Appeal dismissed - decided against appellant.
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