TaxTMI 
TaxTMI 
2006 (4) TMI 293
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....62. The appellant is seriously challenging the imposition of the penalty. 3. Shri Kiran S. Javali, the learned Advocate, appeared on behalf of the appellant and Shri Ganesh Havanur, the learned SDR, for the Revenue. 4. The learned Advocate urged the following points :- (i) The Commissioner has imposed penalty under Section 112 on the appellant without bringing out clearly the reasons. (ii) The Show Cause Notice issued to the appellant and others has relied on the statements of S/Shri Lalit Jain; H. Bhaskar, Inspector; the appellant Shri Vikram Jain. There was an investigation in connection with certain irregularities alleged to have been committed by M/s. MNS Exports (P) ....
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....Shri H. Bhaskar, in his statement, has stated: "I am not aware how the goods were delivered to Vikram Jain as I have not taken delivery of the said goods from M/s. Kanika Apparels." Hence, the above statements are not worthy of being relied upon for purposes of levy of penalty on the appellant. The Adjudicating Authority has relied upon the order passed in the matter of M/s. MNS Exports (P) Ltd. [2005 (190) E.L.T. 124 (Tri.)] to decide the proceedings initiated by the present Show Cause Notice dated 21-02-2000. He could not have relied upon that order without affording an opportunity to the appellant to make his submissions in this regard. The appellant having not been put to notice of the intention of the respondent, the order would amount....
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.... the proceedings in another. In other words, we cannot say that the proceedings in the case of M/s. MNS Exports (P) Ltd. will not have any bearing at all in the proceedings against M/s. Kanika Apparels especially when Shri H. Bhaskar, Inspector and the appellant had been instrumental in perpetrating the fraud. Shri Lalit Jain, Authorised Signatory of M/s. Kanika Apparels, in his statement dated 22-9-1999, has stated that a person sitting in Superintendent of Customs Office (Vikram Jain) whom he identified was the person who had come to his factory (M/s. Kanika Apparels) to collect duty free imported fabric which was cleared from Customs and brought to his factory. He has further stated that he refused to hand over the said material to him b....
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....ion that Shri Vikram Jain is involved in the entire episode. In fact, Shri H. Bhaskar, in his statement dated 22-9-1999, stated the following: "You have also questioned me whether any imports have been made in any other 100% EOU's name and after clearance from the Customs taken delivery by you and handed it over to Shri Vikram Jain of M/s. Texworth International, Bangalore using the modus operandi adopted in r/o. the clearances made in the name of M/s. MNS Exports Pvt. Ltd., Bangalore, for which I wished to state that I have not taken delivery of the goods. However, the goods must have been taken by Shri Vikram Jain and this was told to me by Vikram recently and he further told me that the same modus operandi as in the case of M/s. MNS w....