2006 (12) TMI 280

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..... 2. After hearing both sides duly represented by Shri A.V. Naik, Ld. Advocate for the appellant and Shri Umashankar, Ld. D.R. for the respondent and after going through the impugned order, it is seen that the proceedings were initiated against the present CHA on the basis of detection of fraudulent export case by M/s Payal Exim, which was being handled by the present CHA. The disputed goods were declared as welding electrodes with varying declared unit rates, which, on examination, were found to be of low quality, less in quantity and of lesser value. One Mr. Jayesh Gala, who was the main person behind the export fraud admitted the offence and was arrested. 3. During the course of enquiry against the present CHA, statements....

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.... sole proprietor. He was neither interrogated during the investigation, nor his statement recorded. We have seen the Power of Attorney executed in favour of Shri Bhagwan Sippy, which is a specific Power of Attorney and not a general Power of Attorney authorizing Mr. Bhagwan Sippy to take decisions on behalf of CHA firm. We also note that the said CHA firm which is a proprietary concern was not issued any show cause notice for cancellation of their licence. The notice was issued to Mr. Bhagwan Sippy, Chief Executive Officer. We further note that the Commissioner, in para 22 of his order, has observed that Shri Bhagwan Sippy was imposed with a penalty of Rs 3.00 lakhs for his role in aiding and abetting the export fraud in his individual capa....

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....   My name is Jayesh Gala. Q.2   When did you join this CHA line and with whom you were attached and what type of work you were doing? Ans. Since 2000 I am in CHA line and was attached with M/s. Premji Kalayanji & Co. as a customs clerk with customs pass with category 'TWO'. In 2001, I left the job and surrendered the custom pass and started as liaisoning the DBK claim of various clients. I started export clearance work of various parties and use to get their clearance through CHA. Q.3. I am showing you a statement dated 1-3-2004 in which you have confirmed that you were using CHA license on Rental/Commission Basis on payment of Rs. 500/- per shipping bill in addition to normal Agency charges.  Is it true ?....