TMI Blog2007 (4) TMI 399X X X X Extracts X X X X X X X X Extracts X X X X ..... was a loan, therefore, by selling he wanted to recover loan. He told his staff namely Shri Pradeep Arora and other to help in import and selling of goods. He knew that goods are such that there cannot be sold that perhaps was the reason to sell without bill. He sold through broker. In these circumstances, it has pleaded that they have merely financed and that to legally and they were to get 20% interest also. Now the question is whether Shri Pankaj Shah knew that goods are sold in contravention of the law. The fact of the case is clear that he knew what type of licence they - M/s Mohan Aluminium had and that goods cannot be sold. Even then they helped in importing and selling goods - the goods which are held to be liable to confiscation to selling, therefore, he is also liable to penalty under Section 112 of the Customs Act, 1962. 36. It is pleaded that Shri Ashok P. Shah did not play role, he did not know that goods are liable to confiscation. He signed documents, because he was so authorized in writing by Shri Pankaj Shah and Shri Rajesh Jain that if he had known that there is contravention of the law and even then knowingly violate only, he would amount them to abetment. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... artitioned the entire affairs are being looked after by Shri Rajesh Jain. With regard to your specific question what my involvement in the import of Aluminium Ingots and wire rods by M/s Mohan Aluminium (P) Ltd. Bangalore I would like to state that in the beginning of 1994 Shri Rajesh Jain M.D. of Mohan Aluminium (P) Ltd. was facing some financial constraints and approached my grand father Shri G.P. Shah for help in turn he spoke to me and asked me to help Mr. Rajesh Jain to get over the problem. As I was not sure of recovering the money if I paid to Mr. Rajesh Jain I was reluctant to extend any financial support to him. Again Shri Rajesh Jain approached me through my grand father and informed me that he has got some imprest licence for import of duty free aluminium wire rods and ingots and requested me for financial support as he had some orders from M/s Maharashtra State Electricity Board and N.P.T.C. I accepted to extend financial support to him in case if he authorizes our people to look after the imports and further dealings as well as handling of the imported goods. Accordingly, Shri Rajesh Jain agreed and authorized my brother Shri Ashok Shah and Shri Pradeep Arora Branch Ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssions. 9. The contention of the senior counsel is that the appellant Pankaj P. Shah s involvement in the case was only as a financier of the imports and that all the steps taken by him were only to safeguard the return of the money advanced by him as well as interest on it at the agreed rate of 20%. She would also point out that it is clear from his statement that, once he came to know about the illegal sale of the imported goods in January 1995, he withdrew from the financing of the imports. According to the learned counsel, the statement brings out the bona fide as well as the limited role (finance) played by the appellants. It is his contention that the mere financing of the imports does not render a person liable to penalty under Section 112 of the Customs Act, in regard to violation of post import conditions in regard to the imported goods. It is being highlighted that the licence in question had been obtained by a limited company namely Mohan Aluminium and its Managing Director were responsible for fulfilling the export obligation. The senior counsel has taken us through the relevant portions in the statements of Shri Rajesh Jain, Managing Director of M/s Mohan Aluminium L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... June 1994 and January 1995, 33 imports were made and all those consignments were sold off in the domestic market. This shows that the appellants committed repeated offences and the contention that once Shri Pankaj P. Shah became aware of the sale of imported goods in January 95 he stopped his involvement is not correct. The learned SDR would also emphasis that the present appellants and their employees were fully in charge of the impugned import and sales in as much as funds were first moved from the sale account of their Co. (M/s P.G. Foils Ltd.) to the account of M/s Mohan Aluminium, again a bank account operated under authorization by Ashok P. Shah. Orders were placed for the imported goods by appellant Pankaj P. Shah, goods got cleared from the customs by them by producing the Special Imprest Licence, the imported goods taken to a godown arranged by them and goods sold from there and with the sale price fresh imports ordered. This cycle of transactions were repeated several times. Learned SDR would submit that such comprehensive involvement by the appellants clearly established that they had knowingly dealt with the offending goods and penalties imposed were fully in terms of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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