TaxTMI 
TaxTMI 
TaxTMI 
2010 (3) TMI 473
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....uses Notice No. DRI. F. No. 23/132/2002-DZU dated 30-12-2003 issued in the case M/s. Unicorn Industries - Prop : Sri Tejwant Singh which exported overvalued Microphones Appeal No. Appellant & Respondent Consequence of Adjudication C/997/05 Tejwant Singh v. CC New Delhi Fine Rs. 5.00 lakhs for the export made overvaluing goods, duty liability in respect imports made by transferees of DEPB scrips obtained fraudulently, Fine and penalty for the goods confiscated and interest on the amount of liability unpaid. C/53/06 Rajiv Kumar Sharma v. CC New Delhi Penalty of Rs. 10,00,000/- u/s 114 of Customs Act, 1962. C/56/06 Jagmohan Singh v. CC New Delhi Penalty of Rs. 50,00,000/- u/s 114 of Customs Act, 1962. C/591/06 CC New Delhi v. V. Valte No penalty imposed C/416/09 CC New Delhi v. G.S. Sohal No penalty imposed C/417/09 CC New Delhi v. B.K. Pabri No penalty imposed 2. Order of Adjudication No. 6-9/HKM/CC/DRI/NCH/2005 dated : 31-10-05 arising out of Show Causes Notice No. DRI. F No. 23/137/2002-DZU dated 30-12-2003 issued in the case of M/s. Bonita Industries - Prop: Sri Rajeevan Thouvan Kandathil which exported overvalued Fuel Pump Diaphragms Appeal No....
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....came in appeal against them. 6. All these appeals arose out of common cause of action of all 3 (three) exporters. Overvalued Microphones were exported by M/s. Unicorn Industries whose proprietor Sri Tejwant Singh by order of Adjudication No. 05/HKM/CC/DRI/NCH/2005 dated 30-9-2005, export of Fuel Pump Diaphragm made by M/s. Bonita Industries - Prop: Sri Rajeevan Thouvan Kandathil, dealt by order of Adjudication No. 06-09/HKM/CC/DRI/NCH/2005 dated 31-10-2005 and Microphone and Fuel Pump Diaphragm exported by M/s. Chhabra Industries - Proprietor Sri Narinder Pal Singh involved in order of Adjudication 02/GS/CC/DRI/NCH/2005, dated 30-12-2005 30-10-2005 (sic). 7. In all the 3 (three) Adjudications, charge was misdeclaration of value of goods by over valuation thereof so as to fraudulently claim higher DEPB credits of Rs. 1,68,92,208 by M/s. Unicorn Industries, Rs. 2,14,86,300/- by M/s. Bonita Industries and Rs. 2,98,03,509/- by M/s. Chhabra Industreis and the DEPB credits so availed were transferred to various importers as tabulated below, who used the same for discharge of their liability in respect of imports they made and such imports resulted in loss of Revenue as depicted in the ....
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....DZU dated 30-12-2003 issued in the case M/s. Chhabra Industries - Prop : Narinder Pal Singh which exported overvalued Microphones and Fuel Pump Diaphragms Name of the Importer Loss of Duty recoverable from Exporter Sri Narinder Pal Singh due to use of DEPB credits fraudulently obtained Fine Imposed on the Exporter Sri Narinder Pal Singh Penalty imposed on the Exporter Sri Narinder Pal Singh ACI Computer (I) Ltd Rs. 42,60,194 No fine imposed Rs. 42,60,194 K.L.J. Plasticizers Rs. 6,78,739 -do- Rs. 6,78,739 Silvasa Plasticizers Rs. 20,26,227 -do- Rs. 20,26,227 L.G. Electronics Systems Ltd. Rs. 27,65,605 -do- Rs. 27,65,605 Honda Siel Car Mfq. Co. Ltd. Rs. 66,72,876 -do- Rs. 66,72,876 Adani Exports. Rs. 1,80,95,847 -do- Rs. 1,80,95,847 8. It was observed in the adjudication process that DEPB Scheme was export promotion schemes and duty free import of goods is allowed against redemption of such credit. But all the 3 (three) exporters involved in the above three adjudications having fraudulently availed the credit misdeclaring value of exports, such credit was held to be inadmissible and those were disallowed. The goods exported by all the three exporting conc....
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....ailed large amounts of export incentives under various export promotion schemes such as Duty Entitlement Pass Book Scheme (DEPB), Export Promotion Capital Goods Scheme, EPCG) Drawback and Duty Free Replenishment Certificate (DFRC) and one Sanjay Kumar representative of M/s. Vetri Impex (CHA) had handled the export consignments of Tejwant Singh. Investigation was conducted at the Air Cargo Complex, New Delhi and it was found that M/s. Unicorn Industries, New Delhi had exported several consignments of microphones/cordless microphones/fuel pump diaphragms to M/s. Omid Trade Links, 1411, S. Maple Avenue, Los Angels, C 90015 USA and readymade garments to M/s. Tanweer Trading Dubai during November, 2000 to April, 2001 claiming benefits under various export promotion schemes. 11. Scrutiny of the related export documents revealed that M/s. Unicorn Industries had exported OTL brand cordless microphones, Cheval brand microphones and fuel pump diaphragms to M/s. Omid Trade Links, USA and readymade garments to M/s. Tanweer Trading Dubai under the following shipping bills and airway bills :- S.No. Shipping Bill No. Item Declared Quantity Declared Value Declared Airway bill No. Consignee....
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....show cause notice. 23 shipping bills wherein DEPB credit had not been utilized were dealt issuing separate show cause notice DRI F. No. 23/132/2002-DZU dated 31-3-2003. 12. The export documents examined by Investigating Authority revealed that :- (i) Bank of Punjab Ltd, Rajouri Garden, New Delhi had been declared as the forex bank by the Unicorn in their export documents; (ii) the Unicorn had declared their factory premises to be located at C-197/1A, Mayapuri Industrial Area, New Delhi; (iii) the export shipments had been handled by M/s. Vetri Impex - a licenced CHA. 13. Materials gathered in the course of investigation revealed as under :- (1) Tejwant Singh was the mastermind behind the whole act of defrauding the Government and he organized the entire operation through several fictitious firms, opened by him either under his own proprietorship or under other person's proprietorship over whom he exercised complete control; (2) Cheval Brand microphones exported by M/s.....
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....y endorsing examination reports and giving let export orders on the shipping bills though these two officers were not posted at the warehouse where the goods covered by those shipping bills were kept. (7) No market enquiry for the price of the goods exported under shipping bills (Annexure A) was conducted. The files pertaining to market enquiry were not made available to the DRI by the office of Dy. Commissioner of Customs (Exports). The disappearance of relevant files, verification as to the existence of a non-existence factory and fake market enquiries by Inspector Rajiv Kumar Sharma @ Rajiv Kumar Meharwal, as also the incriminating statements of Sanjay Kumar and Jag Mohan Singh demonstrated collusion/abatement by Inspector Rajiv Kumar and Tejwant Singh. Telephonic conversation (134 in three and a half months) between Tejwant Singh and Rajiv Kumar also corroborated their involvement of defrauding Revenue. (8) The claim of Gurvinder Singh Sohal about obtaining quotations from M/s. Chitra Electronics and M/s. Eligin Electronics was found to be incorrect. These two firms denied to have any knowledg....
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.... Complex, New Delhi, and large amounts of export incentives were availed by that concern under Duty Entitlement Pass Book Scheme (DEPB) and Drawback Scheme. It was found by them that one Tejwant Singh who was also the proprietor of M/s. Unicorn Industries, E-35A, Basement Rajouri Garden, New Delhi (hereinafter referred to as "the Unicorn") was the main mastermind behind all these fraudulent exports. 15. Enquiry made to the Air Cargo Complex, New Delhi revealed that M/s. Bonita Industries, G-22/1A Rajouri Garden, New Delhi (hereinafter referred to as "the Bonita") had exported several consignments of fuel pump diaphragms to M/s. Omid Trade Links, 1411, S. Maple Avenue, Los Angeles, CA 90015, USA during March, 2001, claiming benefits under DEPB-cum-Drawback scheme. Scrutiny of the related export documents was made. That revealed that the Bonita had exported fuel pump diaphragms to M/s. Omid Trade Links, USA under the following shipping bills and airway bills :- Sl. No. Shipping Bill Nos. Item Declared Qty. Declared (Pcs.) Value declared (total) US$ Airway Bill No. Consignee Scheme 1. 6180 to 6189 Fuel Pump Diaphrams 48400 1693616 125- 4607-7990 M/s. Omid Tr....
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....quiries conducted with the US Customs revealed that delivery of all the goods, i.e. fuel pump diaphragms exported under shipping bills mentioned against Sl. No. 1 to 2 of the above table, had been taken by one Banka Singh of Los Angeles, California, USA. Cause of action of order of Adjudication in the case of M/s. Chhabra Industries -proprietor : Sri Narinder Pal Singh 20. Investigating Officers came across certain export of cheap quality automotive parts, viz. fuel pump diaphragms and cordless microphones made by one M/s. Chhabra Industries - Proprietor Narinder Pal Singh, G-22/1A, Rajouri Garden, New Delhi through Air Cargo Complex, New Delhi and found that such exports were made fraudulently to avail large amounts of export incentives under various export promotion schemes such as Duty Entitlement Pass Book Scheme (DEPB), export Promotion Capital Gods Scheme (EPCG) and Drawback. It was noticed that one Sanjay Kumar, representative of M/s. Vetri Impex (CHA) had handled the export consignments of Tejwant Singh. 21. Scrutiny of the related export documents revealed that M/s. Chhabra Industries had exported OTL brand cordless microphones and fuel pump diaphragms to M/s. Omid Trad....
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.... Sri Narinder Pal Singh, Proprietor M/s. Chabra Industries at J-11/18, Raouri Garden, New Delhi and office premises of M/s. Chabra Industries at G-22/1, Rajouri Garden was conducted on 17-8-2001 under Section 108 of Customs Act, 1962. Oral evidence was recorded on 17-8-2001 under Section 108 of the Customs Act, 1962 from Smt. Balbir Kaur mother of Narinder Pal Singh in which she stated that her elder son Narinder Pal Singh was engaged in some export of readymade garments etc. and one of his firm was M/s. Chhabra Industries and that he was out of town. 25. Summons were issued to Narinder Pal Singh on 17-8-2001, 22-8-2001, 17-10-2001, 29-10-2001, 21-12-2001, 14-1-2002, 13-6-2002 for his appearance on 22-8-2001, 27-8-2001, 19-10-2001, 6-11-2001, 24-12-2001, 17-1-2002, 18-6-2002 and 29-7-2002 respectively. But Sri Narinder Pal Singh appeared on 22-8-2001 only and his statement was recorded on the said date. Complaint for non-compliance of summons under Section 108 of Customs Act, 1962 had been field against Narinder Pal Singh in the Court of Ld. A.C. M.M., Patiala House Courts, New Delhi and after due proceedings non-bailable warrants had been issued by the learned A.C.M.M, Patiala Ho....
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....be demanded from exporter against imports made by transferees of DEPB credit following decision of Hon'ble High Court of Bombay in the case of CC. v. Jupiter Exports - 2007 (213) 641 (Bom.). DEPB credit was not wrongfully availed by the appellant since show cause notice does not state the section under which disallowance of the said credit shall be done following decision of Tribunal in the case of Dharam Exports v. CC - 2005 (192) E.L.T. 503, Rammapati Exports v. CC - 2006 (203) E.L.T. 107 and Essar Steel Ltd. v. CCE - 2004 (173) E.L.T. 239. Submissions on behalf of appellant Sri Rajiv Kumar Sharma 27. It was submitted on behalf of the Appellant Inspector Sri Rajiv Kumar Sharma that statement of Sri Sanjay Kumar as to meeting of the Appellant with Sri Tejwant Singh in a restaurant was neither corroborated nor free from contradiction is not reliable. It was not accessible to a third person to read the contents of letter head said to have been issued by Sri Tejwant Singh to Sri Rajiv Kumar Sharma which were used by Department against the Appellant without examining veracity of the statement recorded. The statement of Sri Jagmohan Singh was also not corroborated by any evidence whe....
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....e 29. Learned counsel appearing on behalf of the respondent Sri V. Valte submitted that the said Respondent Officer had not made any conspiracy against Revenue. None of the statements recorded from other Officer as well as Exporter and CHA has established mala fide of this respondent. The Respondent had not deliberately engaged any officer to examine export made by any of the exporters under adjudication. Appeal of the Revenue was beyond scope of Show Cause Notice for the reason that neither he Respondent colluded with exporter nor with any officers to endanger revenue. There was no abetment made by the respondent for exorbitant claim of DEPB by exporters. The Respondent had acted according to law. Reliance was placed on the decision of Apex Court in the case of Sri Ram v. State of U.P. - AIR 1975 SC 175, Faguna Kant Nath v. The State of Assam - AIR 1959 SC 673, and decision of Hon'ble Bombay High Court in the case of M. Shashikant and Company v. UOI - 1987 (30) E.L.T. 868 (Bom.) to plead innocence of the Respondent. The Respondent having acted bona fide under law and acted on good faith is entitled to the immunity from penalty. He had not consciously caused evasion of Revenue and....
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....onfirmed overvaluation resulting in defrauding Revenue and DEPB credits were fraudulently claimed as well the same transferred to different importers for undue gain with the help of Respondent Officers in these batches of appeals. 33. Market enquiry revealed the truth relating to price of Microphone when he failed to disclose identity of Sri Sudhir who was claimed by Sri Tejwant Singh to be supplier of microphones. So also his failure to give identity of M/s Gupta traders and proprietor of that concern, who was claimed to have supplied Fuel Pump Diaphragms proved mala fide and deliberate intention to defraud revenue was established. He had consciously concealed identity of his suppliers of exported goods. 34. Identity of microphone supplier Sri Anil Saxena ascertained from telephone diary proved that the goods were inferior quality and were deceitfully exported overvaluing the same to claim DEPB credit fraudulently. Frequent telephone calls of Sri Tejwant Singh with Sri Anil Saxena did not rule out his dealings of procurement of cheapest microphones exported. His premeditated minds was well proved when he had not manufacturing facility to manufacture the exported goods but was pr....
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....2001 (130) E.L.T. 404 (S.C.) and in the case of Delhi Development Authority v. Skipper Construction Company (P) Ltd - AIR 1996 (SC) 2005. Cheating has been done to claim undue claim of DEPB Credit. There was fraud committed by exporters and such fraud avoid all judicial acts, ecclesiastical or temporal and the exporters had no title to transfer the DEPB credits for which they are liable to make good of losses suffered by Revenue for which the adjudication done against them is not interfereable following Apex Court judgment in the case of S.P. Chengalavaraya Naidu v. Jagannath - AIR 1994 SC 853. The DEPB credits issued being ab initio void were not transferable. It has been held by the Apex Court in the case of Ram Preeti Yadav v. UP Board of High School and Intermediate Education - AIR 2003 SC 4268 that no court in this land will allow a person o keep an advantage which he obtained by fraud. Tribunal in the case of CC v. D.M. Enterprises - 2007 (213) E.L.T. 414 held that fraudulently obtained DEPB Credits has no title on the face of law and it was held in DIC India Ltd. v. CC - 2008 (226) E.L.T. 545 that DEPB credit obtained on the base of forged and fake document does not confer a....
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....overvalued was squarely on the person who exported the same. Such burden was not discharged by the appellants who were intimately connected with each other and suppressed entire fact of illegal deal till search operation detected the same. Following the ratio laid down by Apex Court in the case of C. Sampath Kumar v. The Enforcement Officer, 1997 (96) E.L.T. 511 (S.C.), it was submitted by Revenue that there is no presumption that a statement made upon summon is always involuntary and such a statement can be used in evidence. Revenue further relied on the judgment of Hon'ble High Court of Karnataka in the case of Panduranga Bommiah Vernekar and Anr. v. Collector of Central Excise decided on 2-4-1962 for such proposition. 43. Revenue's further reliance on the judgment of Apex Court in the case of Surjeet Singh Chhabra v. Union of India - 1997 (89) E.L.T. 646 (S.C.) and on the judgment of Hon'ble High Court of Madras in the case of Roshan Beevi & Others v. Joint Secy. to Govt. of Tamil Nadu - 1984 (15) E.L.T. 289 (Mad.) was to submit that the Customs Authorities not being Police Officers, oral evidence recorded u/s 108 of the Customs Act, 1962 even if confessional are usable against....
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....declarations made in the export documents were found to be false and such result of enquiry remained uncontroverted by the Appellant Sri Tejwant Singh. 47. It was found in the course of Investigation that one Shri Harbans Singh was owner of the premises C/197-1-A, at Mayapuri Industrial Area, Phase II, New Delhi. In his oral evidence dated 9-8-2001 recorded under Section 108 of Customs Act, 1962 named Shri Tejwant Singh as occupant for some time and stated that one Shri Jaspal Singh introduced Shri Tejwant Singh to Shri Harbans Singh for letting out the Ground Floor, First Floor and Second Floor of the premises. It was also stated in evidence that Shri Tejwant Singh told Shri Harbans Singh that he (Sri Tejwant Singh) had a firm known as M/s. Unicorn Industries and he required storing place of his goods for that concern. Shri Tejwant Singh told him that he was keeping one Injection Moulding Machine and he made agreements for occupying the Ground Floor, First Floor and Second Floor and such premises were taken w.e.f. 1-7-89/1-8-1999 for storing raw material, finished goods and manufacturing of plastic moulding goods and scrap. He also stated that there was a raid by Customs Authorit....
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.... Tribunal while hearing aforesaid 3 (three) batches of appeal. 50. From the statement recorded from Shri Sanjay Kumar who rendered the services as CHA in respect of exports covered by the shipping bills mentioned in Annexure A to Show Cause Notice on 12-7-2001, it came to light that he was holding a 'G' Card and acted as clearing agent for (4) four concerns viz., M/s. Unicorn Industries, M/s. Chhabra Industries, M/s. Oxford Fashions and M/s. Oberoi Industries operated by Shri Tejwant Singh. He stated that he had issued Airway Bills upto 15-2-2001 for all these 4 (four) concerns. He further stated that ready made garments, Microphones and Automotive parts exported by these firms were of very inferior quality. He stated that he was instructed by Shri Tejwant Singh that Shri Rajeev Kumar Sharma (who is also an appellant in all the three batches of appel), Inspector of Customs Department has understanding with him and he has to take the consignments to the examination area and hand over shipping documents to Shri Rajeev Kumar Sharma, Inspector for doing the needful. Sri Sanjay Kumar further stated that he was given to understand that altnough that Inspector was on duty in different ar....
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.... handed over him the copies of shipping bills endorsed with the stamp of "Final Assessment". Both the documents were handed over by him to Shri Tejwant Singh. Entire procedure of customs clearance in respect of the firms of Shri Tejwant Singh was done by Shri Rajeev Kumar Sharma himself and after the formalities were completed, he used to handover the shipping bills to Shri Sanjay Kumar. He confirmed that physical examination of the goods was done to issue 'let export 'order. Except the first consignment, no consignments were physically examined by any customs officer nor were packages opened. He had never procured any shipping bills for Shri Tejwant Singh nor he had ever visited any factory of Shri Tejwant Singh since there was no factory in existence and there was some consideration involved between Shri Tejwant Singh and Shri Rajeev Kumar Sharma, Inspector to make export of goods of Shri Tejwant Singh. There were regular contacts between Shri Tejwant Singh and Rajiv Kumar Sharma, Inspector. 52. The premises situated in J-7/86 at Rajouri Garden, New Delhi was owned by Shri Jagmohan Singh who is also an Appellant in all the three batches of Appeals. He was proprietor of M/s. Lotu....
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....mber, 2005. Evidence was recorded from Shri Tejwant Singh on three dates i.e. 22-8-2001, 5-11-2001 and 6-11-2001. Thereafter he did not appear before the Investigating Agency. Accordingly, red alert was issued by DRI on 27-11-2002. He was also arrested on 6-11-2001. 55. In the statement recorded on 22-8-2001, Shri Tejwant Singh Proprietor of M/s. Unicorn Industries, agreed that he was looking after the business of M/s. Chhabra Industries, M/s. Bonita Industries, M/s. Oberoi Industries and M/s. Export Fashion. He confirmed that he had invested money approximately Rs. 5 crores in M/s. Skyways Industries and components of Microphones were collected and assembled for export. Similarly auto parts were procured from local market for export. Both were exported under DEPB Scheme. Readymade garments were exported partly under DEPB Scheme and partly under Drawback Scheme. Some of the consignments of Microphones were exported under the "EPCG cum DEPB Scheme". 56. Shri Tejwant Singh in his oral evidence on 22-8-2001 also stated that M/s. Chhabra Industries was a Proprietorship concern and Shri Narinder Pal Singh was its Proprietor (No appeal of such concern or proprietor came up for hearing ....
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....t Singh in his oral evidence recorded on 22-8-2001 stated that he had controlled these business concerns and those goods were manufactured in the basement of his residence and that workshop was not registered with Central Excise Authority. But in his oral evidence recorded on 5-11-2001 he denied carrying out of manufacturing activity and stated that fuel pump diaphragms were purchased by him in fully finished condition rom one M/s. Gupta Traders owned by Shri Satish Kumar Gupta who was known to him for past four years. He further stated that he was providing packing material and receiving fuel pump diaphragm in packed condition from M/s. Gupta Traders. But he failed to provide phone number and details of address of M/s. Gupta Traders as well as of Shri Stish Kumar Gupta. He also stated that he had not seen factory of such supplier but goods received from such supplier were exported. All these story proved that Sri Tejwant Singh obstructed process of Investigation without co-operating and providing identity of either Mr. Satish Kumar Gupta or of M/s. Gupta traders. He wilfully concealed source of procurement of Fuel Pump Diaphragm to cause overvaluation of such goods for undue gain.....
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....t Shri V. Valte, Deputy Commissioner, Shri B.P. Pabri, Superintendent and Shri Gurinder Singh Sohal Inspector of Customs were involved in the export racket, examined them. 63. Deputy Commissioner, Shri V. Valte was examined on 5-9-2001 and his statement was recorded. He stated that he joined as Deputy Commissioner (Export) in Air Cargo Complex on 28-9-2000 and after February, 2001 he was the only Deputy Commissioner in that Complex while in between 28-9-2000 till February, 2001 there were two Deputy Commissioners. He worked there on 28-3-2001. He was processing the shipping bills and controlling the Supdts. as well as Inspectors. He was deputing the subordinate officers to various warehouses for examination of goods meant for export. There were many warehouses under the export cargo jurisdiction. He confirmed that signature on shipping bills of M/s. Unicorn Industries, M/s. Chhabra Industries, M/s. Bonita Industries, M/s. Oberoi Industries and M/s. Skyways Industries were forged. But he could not state whether he had processed the shipping bills of M/s. Bonita Industries. He also confirmed that he had not seen any item like microphone or fuel pump diaphragms exported by M/s. Unico....
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....ficers was not possible to be questioned in absence of any material. 66. In order to find out the status of the lost files, one Appraiser Shri A.K. Bhatnagar of Air Cargo (Export), New Delhi was examined on 17-9-2001. He stated that when he examined the shipping bills of M/s. Unicorn Industries, M/s. Chhabra Industries, M/s. Bonita Industries, M/s. Oberoi Industries and M/s. Skyways Industries, he could notice that the value of the microphones and fuel pump diaphragms appeared to be quite high for which he proposed provisional assessment was suggested pending market enquiry. He had sent the concerned files to Deputy Commissioner on the same day when the files were received. But after approval of the Deputy Commissioner, those files never came back to him, although all these files should have come to him after market enquiry is completed and should have been put up for final assessment. He stated in his oral evidence that the Inspector Shri Rajeev Kumar Sharma had requested him for early processing of shipping bills of one of the aforesaid concerns. 67. The investigating officer examined Shri B.K. Pabri, Superintendent, and the Respondent in these three batches of appeal, who had ....
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.... Shri B.K. Pabri he was examining the consignments of these concerns. He stated that he knew Shri Tejwant Singh and his acquaintance with him began when he went to verify the genuineness of the exporter M/s. Unicorn Industries in Mayapuri Industrial area address as appearing in the shipping bills. During his inspection to that place he found two/three labourers and two machines were lying there while no production was going on at that time. He found some boxes containing microphones/cordless were lying there. He confirmed that the contents of File No. C-VIII/12/ACU/DEPB/Exp./11/01 containing six pages of note sheet and 28 correspondences were within his knowledge and noting in the said file was done by him under his own signatures. He corroborated that all the above five concerns were (represented by one Shri Jagmohan Singh) for clearance and he used to do liaison work with customs for these firms for conducting market enquiry relating to microphones. He visited some dealers of microphones at Lajpatrai Market along with a sample and contacted four to five dealers but he could not name such dealers. 69. When statement recorded from Shri B.K. Pebri, Superintendent and Shri Rajeev Ku....
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....n or seen any OTL-CDL-988 brand cordless microphone which was not available in the market for sale. He further stated that 6-7 months back two persons came to his shop and told him that they were suppliers of such kind of goods to some Government departments and asked him to prepare a quotation for Rs. 5000/- approximately. He prepared a quotation accordingly and one quotation was issued by him for ordinary microphone for Rs. 600/- to Rs. 700/- per piece to those two persons. But he did not recollect whether anybody from Customs department had conducted market enquiry for such goods. 72. When Shri Gurvinder Singh Sohal, Inspector was confronted with the evidence recorded from M/s. Eliqin Electronics and M/s. Chitra Electronics he stated that on 31-3-2003 he had conducted market enquiry and obtained quotations in writing from these two dealers and he does not understand why they denied about the market enquiry conducted from them. When cross examination of above two concerns was asked for by Sri Sohal Inspector, the quotations given by them could not be produced for their perusal because those were not available on record. As result, learned Adjudicating Authority exonerated Sri So....
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.... revenue. Nothing came out to the rescue of the appellants in absence of their bona fide. Series of acts of appellant and chain of evidence gathered by investigation proved ill intent and close association of exporters with the abettors. No circumstantial or direct evidence was led to show that the investigation was perverse. Consequence of follow up enquiry and substantial as well as material and relevant evidence were very well available on record speaking against the appellant to level charge against them through Show Cause Notice. Weighty and credential evidence available on record were sufficient enough to hold all acts of the appellants to be detrimental to the interest of Revenue. Adjudication does not appear to have suffered from any of the legal infirmities and cannot be faulted. 77. Although it was pleaded in the course of hearing that there was denial of natural justice for no permission to conduct cross-examination, that did not weigh consideration heavily when documentary and oral evidence established beneficial interest of all involved in the unlawful claim of DEPB made though overvalued export perpetuating the offence playing role by all the exporters one way or oth....
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....llants to the fold of law. Nexus of each other and their close proximity to the goods exported and fraudulent claim of DEPB made came to light by niceties of investigation. 81. Crystal clear factual findings of the learned Adjudicating Authority and echoing evidence on record do not demonstrate that Adjudications were made suspiciously or under surmise. All pleadings of the appellants were ill founded. Show cause notice properly brought them to charge exhibiting civil and evil consequences for opportunity of rebuttal. Nothing was dealt behind their back. Investigation story was backed by evidence and not impeachable. Corroborative and cogent evidence gathered by investigation directly and surrounding circumstances proving nexus of the appellants to the entire deal does not make investigation story unbelievable. Looking to the entire genesis of the case it can irresistibly be concluded that investigation has very successfully proved its case and what was apparent was proved not to be real. Modus operandi of the all the appellants proved that they had defrauded Revenue and misdeclaration and unlawful claim of DEPB credits was outcome of their accts and omissions for which they were ....