TMI Blog2014 (1) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... ndustries, Delhi are entitled to import the raw silk without paying the custom duty in a huge quantity. The transaction was performed as per the MOU executed between the parties. The raw silk was transported to the main land of the country to earn profit. Intention for the import of these goods has nothing to do with the object of the treaty i.e. to promote the border trade between the local residents of India and China. Dharchula is located about 80 Kilometer from the Gunji, Indo China border. The exemption granted by both the Government of India was misused just to evade the custom duty - Order is set aside - Decided in favour of Revenue. - Central Excise Appeal No. - 4 of 2012 - - - Dated:- 18-12-2013 - Hon'ble Rajiv Sharma And Hon'ble Dr. Satish Chandra,JJ. For the Appellant : Rajesh Singh Chauhan For the Respondent : Prem Ranjan Kumar,R.C. Pathak,Rajesh Chhibber,Ramesh Chandra Pathak ORDER (Delivered by Hon. Dr. Satish Chandra, J) The present appeal has been filed by the appellant-Department under Section 130 of the Customs Act, 1962 against the judgment and order dated 14.07.2011 passed by the Customs, Excise Service Tax Appellate Tribunal (CESTAT) i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pass for the entrance of the said persons, commodities and means of transportation must be accompanied by valid papers for entrance and exit and shall be subject to the supervision and control of the authorities concerned of either country." The learned counsel submits that exemption was allowed only on the border area for the benefit of tribals of the area, but in the instant case, the goods were brought to Delhi. M/s. Krishna Singh Garbyal proprietary of M/s. Krishna Enterprises, in his statement recorded on 21.10.2005 stated that his firm was established in July 2005 only. The raw silk was made available to him from Tibet through Shri Ajeet Kumar Gupta, proprietor of one M/s. Elegant Industries, Delhi, who managed the transaction. The profit which earned was shared equally between the firms. Earlier, Shri Ajeet Kumar Gupta, proprietor, M/s. Elegant Industries has filed a writ petition at Delhi, as mentioned in the Tribunal order (para-5). On 19.05.2006, a search was conducted at the premises of M/s Elegant Industries and also at the residential premises of Shri Ajeet Kumar Gupta. He submits that the raw silk was brought to Delhi. The entire financial investment was made by M/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmits that the authority for advance ruling in ruling No.AAR 28 Cus./2006 on 29th August, 2006 held that the notification in question does not have any actual user condition, after the specified goods are imported. It is also a submission of the learned counsel that the bills of the entry tax was filed by M/s. Krishna Enterprises. The raw silk imported was duly declared in the bills entry and benefit of Notification No.38/96-CUS dated 23.07.1996, which exempts raw silk when imported into India from China through specified land route including Gunji land route, was claimed. The condition attached to the notification stands admittedly fulfilled by the assessee. He also relied on the ratio laid down in the case of CCE Jaipur Vs. Mewar Bartan Nirman Udyog, 2008 (231) ELT 27 (SC), where it was held that the notification pertaining to exemption has to be read strictly and the same has to be interpreted in terms of its language. Where the language is plain and clear, effect must be given to it. Learned counsel further submits that the Hon'ble Supreme Court in the case of Tarulata Vs. CIT, AIR 1997 SC 1802 held that in a taxing Statute, one has to look merely at what is clearly said. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... We have heard both the parties and gone through the material available on record. It is an undisputed fact that M/s. Elegant Industries whose sole proprietor is Sri Ajeet Kumar Gupta has financed Sri K.S. Garbyal to import the raw silk from China. Sri Krishna Singh Garbyal, proprietor of M/s Krishna Enterprises is a dummy importer as observed by the Tribunal. Sri Krishna Singh Garbyal, in his statement dated 21.10.2005 has clearly accepted that he got 50% profit. This is the first year of the business. Earlier, he has no experienced. In the instant case, 440 cartons weighing (13,520 kg.) raw silk valued Rs.1,67,47,293/- covered under the bill of entry No.23/05 dated 02.09.2005 were seized and a fine of Rs.5,00,000/- was also paid by Sri Krishna Singh Garbyal, without depositing the duty of Rs.51,24,672/- pertaining to the raw silk. Similarly, 720 cartons weighing (21996 kg.) raw silk valued Rs.2,73,65,390/- covered under bill entry No.54/2005 dated 03.10.2005 was also confiscated and the fine of Rs.7,50,000/- was paid. In addition, personal penalty under Section 112 of the Custom Acts was also imposed. In the instant case, the entire goods reached at Delhi from China without payi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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