Home Case Index All Cases Customs Customs + AT Customs - 2009 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2009 (8) TMI 281 - AT - CustomsClearances by one EOU to another – Setting up fake consignee units - Procurement of forged CT-3 and re-warehousing certificates – Diversion of goods to local market - Appellant plea is that in case of clearance of goods against CT-3 certificates and re-warehousing certificates having been found forged, duty liability cannot be fastened against the consignor and the same is to be recovered from the consignee, who produced the forged re-warehousing certificates – Fact that consignee unit was only on paper and created by consigner for diversion of goods, established by statements of Directors of consigner, broker and truck owners who transported the goods - In the instant case, we find that the goods were, in fact, never delivered to M/s. DDTC (consignee). The diversion of the same in the local market was also by M/s. Sunstar Impex (consigner). The arrangement of procuring CT-3 certificates and subsequent forged re-warehousing certificate was also at the behest of M/s. Sunstar Impex. As already observed, DDTC was only a paper entry and did not exist in reality. M/s. Sunstar Impex knew that the consignee was a fake entity. As such, at this stage, they cannot shift their duty liability to M/s. DDTC (consignee). Duty stands rightly confirmed against consigner by the impugned order of Commissioner. – Exemption cannot be granted in terms of Notification No. 137/00-Cus. – Admittedly directors of M/s. Sunstar Impex, were actively involved in the day to day functioning of the trading unit and they were actively conniving with other for setting up fake consignee units and in diversion of duty free goods to local market, they are liable to penalty. Their appeals are also rejected.
|