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2018 (6) TMI 17 - AT - CustomsFraud - fraudulent obtaining of Advance Licenses - Penalty u/s 112(a) of the Customs Act, 1962 on Shri Mahesh Purushotam Patel who is a Chartered Accountant and the other one Shri Sudesh Dagadoba Nanaware - it was alleged that the entire modus operandi of the fraud was created by these two appellants - Held that:- Shri Mahesh P. Patel has issued the solvency certificate on the basis of balance sheet which was not signed by the Chartered Accountant. Therefore, he was not supposed to issue any certificate which is not based on the audit of books account. On the basis of the certificate issued by the Chartered Accountant, Shri Mahesh P. Patel, M/s. Spectrum Fabrics obtained the advance licence fraudulently which resulted in huge revenue loss of ₹ 1.46 crores customs duty to the Government exchequer - penalty on Shri Mahesh P. Patel upheld. Penalty imposed on Shri Sudesh D. Nanaware - Held that:- He is a consultant for obtaining the advance licence from DGFT. As per his advice, the entire fraud was committed - also, the appellant Shri Sudesh Nanaware, being a consultant, has admitted the pre-decided plan for committing the fraud - penalty upheld. Equal amount of penalty u/s 114A against M/s. Spectrum Fabrics - adjudicating authority had not gone into this aspect - Held that:- In the show cause notice, penalty under Section 114A was proposed. However, the adjudicating authority has neither discussed the issue of penalty under Section 114A nor any order was passed in the operative portion of the order - this issue first needs to be considered by the adjudicating authority - matter on remand. Appeal dismissed - decided against appellant.
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