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TMI Blog2017 (3) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... o foreign buyers. Authorities of DGCEI investigated an intelligence indicating that the respondent was diverting Cigarettes cleared for export duty free into local market and were creating fake/ forged proof in respect of such consignments to regularize the same. The investigation undertaken as well as scrutiny of records revealed that the respondent exported following three consignments of Cigarettes through M/s. Lumiere Impex and M/s. United Enterprises:- (i) AR4 No. 40 dated 01.1.2001 for export of 10,00,000 numbers of MIDLANF brand Cigarettes valued at Rs. 2,76,000/- involving Central Excise duty of Rs. 12,60,000/- for export to M/s. Ajman Suthshu General Trading LLC, Ajman (UAE) through M/s. Lumiere Impex, 13, Alka Mansio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... With the above back ground, we have heard Shri Amresh Jain Id. DR appearing for the Revenue and Shri R.K. Hasija, Id. Advocate appearing for the respondent-assessee. 5. Ld. DR submitted that the Id. Commissioner in the impugned order has wrongly dropped entire demand of excise duty. The stand adopted by the adjudicating authority is that the goods were cleared from the respondent's factory for export through merchant exporters. The merchant exporters have executed the bond to safe guard the duty subject to providing proof of export. The proof of export furnished by the merchant exporters was found to be fraudulent. The Commissioner has taken a view that the liability for excise duty payment on the goods would stand transferred fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the respondent. He further submitted that the inability of the Revenue to recover the duty from the merchant exporters cannot be cited as a reason for demanding duty from the respondent. 7. Consignments of Cigarettes have been cleared from the respondent's factory on the basis of bond executed by two merchant exporters. It is also on record that the proof of export also stand submitted. However, during the course of investigation undertaken by DGCEI, it has emerged that the consignment of Cigarettes cleared for exports were never exported. It was further proved that the proof of export submitted were fabricated and fraudulent. It has further been established that the merchant exporters who have come forward with the offer of e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty. They will stand discharged only when the proof of export is given. From the wordings of the bond, it appears that in the present case, where merchant exporters have failed to produce genuine proof of export, the liability to pay excise duty is required to be fastened on the merchant exporters. However, during the course of investigation it has emerged that merchant exporters were found to be non-existent, at the addresses submitted by them to the department. In such circumstances, it has to be presumed that no such merchant exporters existed at their declared addresses and the bonds executed by such merchant exporters have ceased legality to be a valid document. In the absence of valid bond from the merchant exporters, the liability for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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