TaxTMI 
TaxTMI 
TaxTMI 
2004 (11) TMI 430
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....y J. Desai, Sunil Verma, Anoop Kumar Wadhera and Nirmal J. Agarwal (hereinafter referred to as the 'co-applicants'). 2. The facts of the case have been narrated in full details in the Interim Order No. 28/2004-Cus., dated 16-7-2004 [2004 (178) E.L.T. 1077 (Sett. Comm.)] vide which the applications filed by the applicant and all the co-applicants were admitted in respect of imports effected through Mumbai port. To summarise the facts relevant for this order, the applicant had obtained Advance Licence No. 0610004318 dated 22-10-2002 for duty free import of a total of 1050 MTs of garlic having declared value of Rs. 1.67 crores as against the export obligation of garlic powder weighing 300 MT having FOB value of Rs. 1.80 crores. The said ....
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....ted that the goods imported duty free under the Advance Licence obtained by the applicant viz. Garlic (bulbs) had been diverted and sold in the domestic market for profit in violation of conditions of the said Advance Licence. Information was worked out by the Officers of DRI. It was gathered that the applicant had exported 7 containers purportedly stuffed with 'Garlic Powder' to Dubai. When the 7th container was about to be loaded on board a vessel, it was intercepted. On examination of the container it was found that in only 10 bags, garlic powder was found. In the rest of the bags viz. 405 bags, some earthy matter/clay powder was found. The concerned Shipping Lines were contacted to know the status of the earlier 6 containers and were pe....
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....se Notice has been issued by the Revenue. 5. The applicant filed application on 28-5-2004 for settlement of the case. It admitted duty liability of Rs. 1,18,29,593/- in the application. The applicant had deposited Rs. 1,18,00,000/- during the investigations. The co-applicants also filed applications on 28-05-2004. The Commission vide Interim Order dated 16-7-2004 (supra) admitted all the applications for settlement in respect of the imports effected through Mumbai port. 6. Subsequently, the applicant approached the Chairman, Customs & Central Excise Settlement Commission, Principal Bench, New Delhi, requesting transfer of the part case from Addl. Bench Chennai to Addl. Bench Mumbai. The Chairman, vide an Order dated 31-8-2004, a....
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....etropolitan Magistrate was dismissed. The ld. Advocate finally pleaded for grant of immunities to all the applicants in this case. 9. The Revenue was represented by Shri V.K. Singh, Deputy Director, Shri Tejram, S.I.O. DRI, Mumbai and Shri R. Jaganathan, Deputy Commissioner of Customs, Chennai. The Revenue conceded that the applicant has made full and true disclosure of its duty liability. It further submitted that the department has filed SLP in the Supreme Court against the order of Gujarat High Court [2004 (165) E.L.T. 499 (Guj.)] in the case of M/s. Mahendra Petrochemicals Ltd. He requested for a week's time to know the decision of the Hon'ble Supreme Court in the said SLP [since reported in 2004 (174) E.L.T. A35 (S.C.)]. 10.&ems....
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....1 crore without prejudice to their rights and contentions. The correspondence exchanged by the respondents would also indicate their anxiety to unearth the mischief caused by the supporting manufacturer. In substance, the Magistrate was convinced that the respondents were pursuing the matter bona fide." 13. The applicant has taken the plea that it has been cheated by the supporting manufacturer i.e. Deepak Agro Products, Neemuch and that it has come before the Commission with an honest desire to settle the case. From the records, it is observed that in all the 7 exports, the stuffing of export goods in the containers was done in the presence of concerned Customs & Central Excise staff. The certificate given by them in each case indica....