2007 (3) TMI 332

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....er Institution. The appellant was engaged in export business and for the said purpose appellant imported certain Yarn by way of concession in the light of export obligations. The Intelligence gathered that K.K. Industries had obtained several advance licences from the Authority for export of fabrics/made-ups and before realisation of various parties on commission basis, gathered certain information in the matter of evasion of Customs duty in the case on hand. The Officers of the DRI Bangalore searched the premises of K.K. Industries on 7-2-1996 and gathered some incriminating document under Mahazar dated 7-2-1996. They also searched the premises of Shri Gopi Krishna Lath and Shri Kumar Pal and Shri Uttam Chand T. Shah partners of K.K. Indus....

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....material on record, it is seen that after search, certain incriminating materials have been obtained by the Department. The material on record would reveal that M/s. K.K. Industries was holding advance licence in the import of Mulberry Raw Silk Yarn. They did not have sufficient money to import on their own. They approached one Shri Shah to import the same on being paid Rs. 300/- per kg on imported Mulbery raw silk against the advance licences. Shri Shah imported the same in the name of K.K. Industries. He collected the same from Bombay and Madras Ports. He sold the same in the Domestic Markets and made huge profits out of this transaction. Statements were recorded and thereafter duty was demanded and duty order has been passed and the same....

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....the export obligation. Noticing the rigor of the notification and conduct on the part of the appellant, the Commissioner has chosen to confirm the penalty. For confirmation of the penalty, he would notice the statement made by three partners and their admission with regard to their having sold or transferred the import licences to Shri Kisan Soni of M/s. Balaji Yarn Trading Company. He would also notice the admission that they have sold or transferred the imported material to M/s. Eastern Silk Industries Limited, Calcutta. It is after noticing the admissions the Commissioner has come to the conclusion that the penalty has to be confirmed. In so far as the appellant is concerned, he would notice the statement. Ultimately, he on facts would c....