Export fraud and diversion of duty-free goods upheld after forged shipping records showed no actual shipment.

Goods cleared under ARE-1 documents were found not to have been physically presented at the export port, and the shipping bills, bill of lading entries and reverse endorsements were inconsistent and bore forged signatures. Evidence from Customs officers, transport records, shipping agents and the CHA supported the conclusion that no shipment under the relevant shipping bills had taken place. The transaction was therefore treated as fraudulent diversion of duty-free goods into the domestic market and a deliberate attempt to evade duty. On that basis, the finding of export fraud and diversion was upheld, and the duty demand, penalty and allied consequences were sustained.

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Issues: Whether the goods shown as exported were in fact diverted to the domestic market with forged export documents, justifying confirmation of duty demand and penalties.

Analysis: The record showed that the goods cleared under ARE-1 documents were never physically presented at the export port, while shipping bills, bill of lading entries and endorsements on the reverse of the shipping bills were inconsistent and bore forged signatures. The evidence from Customs officials, transport records, shipping agents and the concerned CHA representatives supported the finding that no shipment under the relevant shipping bills had taken place. On that basis, the transaction was treated as a fraudulent diversion of duty-free goods to the domestic market and as a deliberate attempt to evade duty.

Conclusion: The finding of export fraud and diversion of goods was upheld, and the duty demand, penalty and allied consequences were sustained against the appellant.

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