2003 (5) TMI 255

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....ies of goods imported by it and cleared in terms of special imprest licences, which rendered the goods eligible for partial exemption from duty as contained in Notification No. 117/94. The basis of the charge that the licences were forged is not denied by any of the applicants. The claim on behalf of the importer and, S.N. Baheti & Prakash K. Mehta, its Chairman and Managing Director respectively, on each of whom penalty of Rs. 25,000/- under Section 112 is imposed, is that they purchased these licences in the ordinary course of business from Ketan Shah and Mahendra Shah and did not have reason to believe that they are forged. It is emphasized that no evidence has been sought to show complicity of the firm or its employees in the transactio....

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....te to ask each of these applicants to deposit Rs. 5 lakhs. 5. Mahendra Shah and Kamlesh Mehta, on each of whom penalties of Rs. 50 lakhs and Rs. 25 lakhs respectively have been imposed, were the brokers who supplied licences to the importer. The notice alleges that Mahendra Shah is in fact the main person concerned, having created four firms in the name of Kamlesh Mehta, his employee, in order to transact in forged licences. Heavy emphasis is placed in the order upon the fact that Mahendra Shah, in his statements recorded under Section 108 of the Act, accepted that he was aware of the licences that he purchased from Pradeep Saraogi, Mahendra Kothari and Atul Goradia were forged and that, although he made the payments in cheques, he re....