TMI Blog2005 (7) TMI 240X X X X Extracts X X X X X X X X Extracts X X X X ..... pper ingots/wire bars and brass scrap cleared against advance licence and DEEC books and disposed of in local market instead of utilisation thereof in the manufacture of final products for export, resulting in contravention of the conditions of notification 203/92-Cus, and penalties of the following amounts inter alia have been imposed under Section 112 of the Customs Act on the following persons :- (1) Deendayal Didwania - Rs. 1.5 crores (2) Navneet Kumar Didwania - Rs. 1.5 crores (3) Sultan Kamaruddin Dharani - Rs. 10 lakhs (4) Nikhil Shipping Agency - Rs. 5 lakhs (5) Edna Bhimsen Singh - Rs. 2.5 lakhs (6) Bhimsen Singh Bhagat - Rs. 2.5 lakhs (7) Ugrasen Singh - Rs. 1 lakh The order covers 13 consignments cleared by three CHAs. In the second order, a duty demand of Rs. 99,76,671/- has been confirmed against M/s. Vinob Exports on the ground that they were not entitled to duty free import as imported goods had been disposed of in the local market contrary to the conditions of notification 203/92-Cus. (no appeal h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It is for this reason that duty demand has been confirmed against M/s. Vinob Exports. Penalty has been imposed on the father and son duo on the ground that the goods were disposed of by them and they were behind the entire scheme of evasion of customs duty and aided and abetted such evasion, rendering the imported goods liable to confiscation and rendering them liable to penalty under Section 112 of the Customs Act. By the same order, the Commissioner has rejected the claim of M/s. G. Mckenzie Co. for reshipment of the goods on the ground that they are not the real exporters from U.K. and has directed that the imported goods be dealt with in accordance with the provisions of Section 48 of the Customs Act and the goods have also been auctioned and sale proceeds realised. 5.In the third case, the stand of the Revenue is that certain traders have imported consignments of HDPE by grossly undervaluing the same with connivance of the supplier in the name of benami firm M/s Equipment Produce, New Delhi, and on this basis the value of the consignments was enhanced to US$ 1,200 per MT and differential duty collected and penalty was imposed upon the CHA M/s. Shree Ram Clearing Forwardi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de on the ground of violation of natural justice in respect of the above named two appellants, the appeals of co-noticees against this order are also allowed by way of remand along with the appeals of Deendayal Didwania and Navneet Didwania. 8.The grievance of the Didwania duo against the Commissioner's order dated 15-7-1998 is that the entire case against them has been made out on the basis of the statements of Satinder Singh of M/s. Gurukripa International Clearing and Forwarding Agency who used the CHA licence of M/s. Noble Shipping Agency for clearance of goods imported duty free by M/s. Vinob Exports, his brother Dhirendra Singh and Shiv Kumar Anand, proprietor of M/s. Preeti Roadlines who transported consignments of M/s. Vinob Exports and their request for cross-examination of these three persons has not yet been considered, although cross-examination was absolutely vital to their defence. We see force in this submission and, therefore, set aside the impugned order and remand the case to the jurisdictional Commissioner for fresh decision on merits after examining their request for cross-examination. He shall pass fresh orders after extending a reasonable opportunity to Deen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... later threw away all the documents. 10.Heard both sides. 11.The sequence of events in the case have to be briefly recapitulated. 12.Some 7 containers of copper ingots/rods were imported into India by M/s. Vinob Exports, New Delhi. The consignments landed in India in March 1995. Three bills of entry were presented for their clearance under DEEC scheme. The officers of R I of Preventive Commissionerate took over the documents on 10-4-1995. On the same day the importers wrote to Dena Bank to return the documents pertaining to the import to the shipper as they cannot clear the goods for one reason or the other. These documents were sent to the Bank on D.P. basis by the shipper, according the claim made by M/s. G. Mckenzie . Co. The Bank seemed to have returned the documents on 14-4-1995. 13.It is evident therefore, that the importers wrote to the Bank to return the documents on the same day when the said imports were being scrutinised by the officers. It is also evident that Shri Agarwala, the alleged exporter, was aware of the return of the documents to him by 14-4-1995. Yet he does not speak of this aborted export venture when he was interviewed by H.M. Customs on or befor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e cannot improve on what the Commissioner has held in the impugned order, we wish to proceed on the basis that the goods are not liable to confiscation. 17.The Supreme Court in the case cited supra, pointedly made a reference to the fact that the importer disappeared and failed to appear before the authority. In the present case also the importer made himself scarce. It is only when he came to know that the goods cannot be cleared without payment of duty, even when he filed bills of entry for the clearance under notification 204/92, an attempt was made to have the alleged exporter claim the goods. Under these circumstances the tax authorities are duty bound to safeguard the interests of Revenue by not allowing the design to defraud the government succeed. 18.Further a Customs authority while deciding the ownership of the goods has to be doubly careful. He has to be absolutely certain that the claimant (exporter in a foreign country) is not acting in connivance with the importer to salvage the loss that would have otherwise resulted in not claiming the goods. The Commissioner's contention that the appellant has not established his claim in the light of tell-tale circumstances wi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
