TMI Blog2016 (3) TMI 774X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant is set aside. Also as the appellant was a resident of Dubai, the Customs Act is not applicable against a person residing outside India followed by the Tribunal in a judgement in the matter of Shafeeq PK v. CC, Cochin [2015 (9) TMI 1257 - CESTAT BANGALORE]. Therefore, the relief has been granted to the assessee on this ground also and the penalty is set aside. - Decided in favour of appellant with consequential relief - C/273/2011-DB - Final Order No. 20199 / 2016 - Dated:- 19-2-2016 - SMT ARCHANA WADHWA, JUDICIAL MEMBER AND SHRI ASHOK K. ARYA, TECHNICAL MEMBER For the Petitioner : Mr Karan Bharioke , Adv For the Respondent : Mr. Mohammad Yusuf, A.R. ORDER PER : ARCHANA WADHWA The challenge i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sh Prabhu revealed that all the transactions were dummy to hoodwink illegal money transfers between Shri Imtiaz Ahmed based in Dubai and Shri Feroz Khan based in Bangalore and he only benefitted on some commission basis. 4. Based upon the result of the investigations, proceedings were initiated, inter alia against the present appellant for imposition of penalty upon him by way of issuance of show-cause notice. The same stands culminated into the present impugned order. It is appropriate to reproduce a particular paragraph under which the Commissioner has imposed penalty upon the assessee. 144.2 Most of the legal issues raised by Shri Imtiaz Ahmed have been discussed above, The important issue regarding his involvement, in the case m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y M/s SLN were fraudulent in nature. The sale proceeds in respect of the export goods under seizure covered under three shipping bills were received as Advance Remittances against Export from Bareeq Al-Sharq General Trading Co., Diera, P.O.Box No 115049, Dubai, even prior to the physical export of the goods. The aforesaid amount so received as sale proceeds into the current account No. 18510210000373 of UCO Bank, MCB, Bangalore was transferred on the same day mainly into various accounts of the firms owned by Shri Suresh Prabhu viz., Meadows Fashions and SDM Logistics. The aforesaid amounts so transferred were withdrawn in cash on the same day by Shri Suresh Prabhu himself. The whole systems worked with clock work precision like a well-oile ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ttances were made to the Mid-Corporate Branch, Bangalore of UCO Bank for all the exports by M/s SLN under subject three shipping bills. It appears that advance remittances were made by Bareeq Al-Sharq General Trading Co., Deira, P.Q. Box No,115049, Dubai to SLN's current account maintained at UCO Bank, Bangalore and thereafter the same have been transferred to Shri Suresh Prabhu's other companies viz,, Meadows Fashions and SDM Logistics. Shri Imtiaz Ahmedbased in Dubai is the chanalising agency for remitting the amounts from Dubai. The group comprising of Shri Suresh Prabhu, Shri Imtiaz Ahmed, Shri Feroz Khan and others have caused grave injury to the economy of the country by availing undue duty free import benefit owing to their f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ne to put a clock of secrecy illegal money transfer between his associates Shri Imtiaz Ahmed based in Dubai and Shri Feroz Khan based in Mangalore/Bangalore. Shri Suresh Prabhu monetarily benefited from the subject fraudulent exports since he could sell the corresponding DFIA scrips (with excess duty free credit of inputs than otherwise admissible) obtained illegally through brokers to various parties at a premium. Shri Imtiaz Ahmed has also not come forward not to make himself available for examination by the investigating officers. From this can be inferred his guilty mind. As stated earlier the whole systems worked with clock work precision like a well-oiled machine, without any breakdown. The entire cycle of money receipt into the count ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ence to sustain the charge as levelled against the appellant. The email recovered shows involvement of a shipping agent in Dubai as observed in earlier paragraphs, however, the said shipping agent has not been made an accused. We cannot uphold the invocation of penal provisions only on the basis of such uncorroborated confessions of the co-accused. No link of the Appellant to the entities who either received the exported goods and/or paid for them has been established. The Appellant has not been found involved in procurement, export or any other activity connected with the exports of SLN. Whether or not the appellant is cousin brother of Feroze Khan is wholly immaterial, in absence of any tangible material against the appellant. There is al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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