TMI Blog2009 (1) TMI 166X X X X Extracts X X X X X X X X Extracts X X X X ..... 47 to M/s. G.R.M.L. who has shown sale at Rs. 430/- - Penalty imposed on company is valid but reduced from 10 lakhs to 5 lakhs - penalty individuals also upheld but reduced. - C/232, 235 and 233/2005 - C/9-11/2009(PB) - Dated:- 6-1-2009 - S/Shri M. Veeraiyan, Member (T) and P.K. Das, Member (J) Ms. Reena Rawat and Shri Amar Gupta, Advocates, for the Appellant. Shri Vijai Kumar, DR, for the Respondent. [Order per : M. Veeraiyan, Member (T)].- These three appeals arise out of the same order-in-original. There are other parties to the said order-in-original; it is informed that in respect of some of the parties, the appeals have been dismissed for non-compliance of the terms of the stay order and in the case of R.A. Internation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sis of their fraudulent claims, M/s. RAI obtained five DEPB licences for a total duty credit of Rs. 90,64,310/-, M/s. SMPL obtained nine DEPB licences for total duty credit of Rs. 1,52,26,842/- and M/s. AMFPL obtained ten DEPB licences for a total duty credit of Rs. 1,73,37,028/- against these exports. M/s. AMFPL then sold their DEPB licences to different parties who utilised the said licences to offset the customs duty liabilities on their respective imports. The investigations further revealed that Shri Parasmal Rampuria, Managing Director of GRML and authorised signatory of PESL mastermined the entire fraudulent operation in collusion with the partners of M/s. RAI. Similar modus operandi was adopted by Shri Parasmal Rampuria in respect o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as no allegations in the show cause notice specifying his role; that the findings against him is that he introduced one Shri Hitendra N. Doshi who was made Director of the export company controlled by Parasmal Rampuria and no other evidence is relied upon against him. Therefore, there is no justification for imposition of the penalty on Shri Naresh Jain. 4.2 Learned Advocate, on behalf of M/s. G.R. Magnets Ltd., submits that the unit was registered with Excise authorities; they had electricity connection. It was admitted that there was no plant and machinery installed in the company. It is also admitted that AR-4s were prepared by the company in relation to the exports. However, it was also claimed that M/s. G.R.M.L. had no role in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that in the case of R.A. International and three other appeals have been finally disposed of vide Final Order Nos. 15-18/C I-Cus. dated 10-1-2007 in Customs Appeal Nos. 854-857 of 2004. In the said order the Tribunal has held that the exports have overvalued with a view to claim ineligible DEPB benefits. 6.1 We have carefully considered the submissions from both sides. We are concerned with the appeals filed by the above-mentioned three parties. We are; not going into the merits of the case against the other parties to the order of the Commissioner. 6.2 As regards Shri Naresh Jain, we find that there is no specific allegation in the show cause notice about his role in the fraudulent exports or abetment of the same. On the other han ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the statements of other parties. The involvement of G.R.M.L. in the irregular exports by abetting the said exports in the manner mentioned above is clear. Therefore, there is justification for imposition of penalty. However, having regard to the entire facts and circumstances of the case, we reduce the penalty from Rs. 10 lakhs to Rs. 5 lakhs (rupees five lakhs). 6.4 As regards Shri Rohitash Bhomia, we find that he is involved himself very closely with Shri Parasmal Rampuria of G.R.M.L. in procuring materials, facilitating the opening of the accounts for exporting firms, choosing CHA for handling customs work, signing export documents and collecting documents from the customs. In addition, he is admittedly the Chairman of Uttam Inter ..... X X X X Extracts X X X X X X X X Extracts X X X X
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