2008 (3) TMI 614

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....ld that the excess quantity of raw materials i.e. white/yellow phosphorus valued at Rs. 13,93,77,356/- was imported duty free by inflating the value of inputs in the application of M/s. United Phosphorus Ltd. to the DGFT for the Advance Licenses and thereby M/s.  United Phosphorus Ltd. obtained excess entitlement of duty free imports. The said excess quantity of white/yellow phosphorus valued at Rs. 13,93,77,356/- is liable to confiscation under Section 111(d) and (o) of the Customs Act, 1962. He, further, held that the said acts of omission and commission rendered the goods liable to confiscation and rendered the M/s. United Phosphorus Ltd. and other applicants liable to penal action under the provisions of Section 112(a) and (b) and/....

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....orus Ltd. under Section 112(a) and/or Section 114A of the Customs Act,1962. IV. Penalty on each of them is imposed under Section 112 of the Customs Act, 1962 as under : (i)      Shri Rajju Shroff, MD - Rs. 50, 00,000/- (Rupees fifty lacs only) (ii)     Smt. Sandra Shroff, Jt.MD - Rs. 25,00,000/- (Rupees twenty five lacs only) (iii)    Shri Arun Asher, Director, Finance - Rs. 15,00,000/- (Rupees fifteen lacs only) (iv)    Shri R. Rajashekar, Sr.Gen. Manager - Rs. 10,00,000/- (Rupees ten lacs only). 2. Heard both sides and perused the records. 3. The applicants contended that there was no mis-declaration or mis-representation or supp....

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.... It is not the respondents' case that the components were not used. The only case is that the value which had been indicated in the application was very large whereas what was actually spent was paltry amount. To be noted that the licensing authority having taken no steps to cancel the licence. The licensing authority have not claimed that, there was any misrepresentation. Once, an advance licence was issued and not questioned by the licensing authority, the Customs authorities cannot refuse exemption on an allegation that there was misrepresentation. If there was any misrepresentation, it was for the licensing authority to take steps in that behalf." (emphasis supplied) 4. We have considered the submissions made by the applicants a....