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2017 (12) TMI 244 - CESTAT MUMBAIRecovery of duty u/s 28 of CA, 1962 - levy of penalties for abetment of customs duty - forgery of certificates prescribed for availing concessional rate of duty - With the finding that the certificates issued by Line Ministry were not in existence at the time of presentation of bills of entry, the adjudicating authority fastened duty liability and imposed penalties on the appellant for failure to comply with the condition in the notification requiring the production of the prescribed certificate - time limitation. Held that: - the eligibility being contingent upon essentiality of the goods for the project and approval of the Government of India which can be evidenced only by the countersignature of the designated official and such being non-existent in the impugned imports, the eligibility does not exist even till today - The failure of the Government of India in the Department of Economic Affairs, Ministry of Finance to nominate a Line Ministry for the project at the time of import does not waive the requirement of compliance with the condition in the notification to evidence essentiality and approval. Neither does it condone the production of a forged certificate to accord it a sanctity that it fails to possess ab initio. The role of Shri Rakesh Yadav in the fabrication of the certificates has been sufficiently established. That M/s ICICI Bank and M/s Jindal Steel & Power Ltd have a major financial stake in the execution of the project is axiomatic. Any delay in obtaining the countersignature of the designated officer in the certificate issued by M/s ICICI Bank would have repercussions for both that would motivate them to collaborate in submission of a certificate that was not in accord with the prescriptions in the notification. Indeed, they stood to derive the benefits emanating from the fabrication of the documents - Their protestations of being the victims of cross-fire may not find many takers as the exemption notifications claimed by them cannot but have been within their knowledge and the crucial role of Line Ministry is unambiguously clear. The definition of Line Ministry i.e. offers no scope for any doubt that the Line Ministry may have been the Department of Economic Affairs in Ministry of Finance as that Department was enjoined to nominate one and, that too, for each project. Their failure to press for the nomination of such Line Ministry and their acquiescence in the ingenuity of a personage of that Department to fill the void, albeit without authority, is not easily obliterated. Jurisdiction - validity of the notice leading to the impugned order - Held that: - the decision in the case of Mangali Impex vs. Union of India [2016 (5) TMI 225 - DELHI HIGH COURT] relied upon - matter on remand. It would be appropriate to remand the matter to the adjudication authority - appeal allowed by way of remand.
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