TMI Blog2006 (3) TMI 544X X X X Extracts X X X X X X X X Extracts X X X X ..... y free by certain 100% EOU units and the same were diverted into local market, without payment of customs duty leviable thereon. He admitted that he had not received any duty payment documents i.e. invoices, delivery challans, bill of entry, etc. along with goods. On physical verification, the officers found 31,990 yards of imported polyester fabrics valued at Rs. 28,62,650/- which was seized under panchnama-dated 19/20-3-2003 for further investigation. During investigation, statement of Shri Kirti Kumar Ottamchand Doshi was recorded wherein he has stated that 6,914 yards of imported polyester fabrics were received from M/s. Tabrez Impex, an SEZ unit. Some velvette fabrics was received from M/s. Bhavya Garments after being cleared illicitly and mercury suiting fabrics was received from M/s. Khan Textiles. The goods were received from M/s. Tabrez Impex, an SEZ unit were first in-bonded in M/s. Manoj Processors from where the goods were cleared illegally without payment of duty. Shri Ramesh Chandra Chunillal Agarwal, Director of M/s. Bhavya Apparels in his statement dated 20-3-2003 stated that he agreed with the statement dated 20-3-2003 of Shri Kirti Kumar Ottamchand Doshi. The impo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ority as relevant documents as asked by them were not supplied to them. They have written 2 letters to DRI and 2 letters to the adjudicating authority but these letters were ignored, as they had not received the reply either from the DRI or from the Commissioner. He also pleaded that they were handicap due to non-availability of the documents and could not file reply to the show cause notice. However, the Commissioner decided the show cause notice without receiving their reply and without hearing them. 4. It was also argued the goods were seized from Shri Kirti Kumar Ottamchand Doshi who is the owner of the goods. An option of redemption fine has been given to him, if any duty is required to be paid it has to be paid by the owner of the goods. They are not required to pay any Customs duty under Section 72 of the Customs Act as they had accounted for the goods. Duty under Section 72 of the Customs Act can only be charged when the goods were cleared without payment of duty. Since they have already explained that the goods are accounted for by them in the records of M/s. Harshvardhan Exports, therefore, they are not liable for any penalty. 5. On behalf of Shri Ramesh Chander Chunn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a transaction point of imported goods, the country of origin is shown as UAE though the goods were of Korean and Taiwan origin only. Shri Ramesh Chander Chunillal Agarwal had clearly admitted that these goods were sold by him to Shri Kirti Kumar Ottamchand Doshi and this sales to Shri Kirti Kumar Ottamchand Doshi was adjusted in their records by showing deemed export, however, no goods were sent under deemed export but only papers were sent. It was argued that since these facts were in the knowledge of Shri Ramesh Chander Chunillal Agarwal, therefore, these facts cannot be denied nor further evidence is required to establish these facts. The retraction of the statement dated 20-3-2003 by Shri Ramesh Chander Chunillal Agarwal was not correct as in his next statement dated 18-6-2003 he has stated that his statement dated 20-3-2003 was voluntary. It was, therefore, stated that since the facts which were in the knowledge of the Shri Ramesh Chander Chunillal Agarwal and has been accepted as correct, no further evidence is required to prove those facts. The opportunity of personal hearing was given to Shri Ramesh Chander Chunillal Agarwal on 17-2-2004, 19-2-2004, 3-3-2004 and 4-3-2004 he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tamchand Doshi. He had stock of imported fabrics since last 2-3 years. From the statement of Shri Ramesh Chander Chunillal Agarwal, it is clear that the seized quantity of 17,171 yards of fabrics were imported by M/s. Harshvardhan Exports Private Limited for which Shri Ramesh Chander Chunillal Agarwal produced bill of entry before the officers as per his statement dated 18-6-2003 and he has clearly stated that these goods were sold by him to Shri Kirti Kumar Ottamchand Doshi. He also made it clear that they have adjusted these goods in their book of accounts by showing deemed export but only papers were sent for deemed export and the goods were sold to Shri Kirti Kumar Ottamchand Doshi without payment of Customs duty. From his statement, it is clear that the goods were cleared without payment of Customs duty from a warehouse of 100% EOU. Therefore, they were required to pay duty before clearance of the goods under Section 72 of the Customs Act. M/s. Harshavardhan Exports were liable to pay duty on the goods which were cleared from the premises of M/s. Harshvardhan Exports Private Limited without payment of duty under the provisions of Section 72 of the Customs Act and M/s. Harshvar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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