2009 (9) TMI 780

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....RDER I have heard both sides on the applications for waiver of predeposit of penalties imposed for aiding and abetting different exporters in over-invoicing of ready-made garments so as to obtain higher inadmissible drawback. Order-in-Original No. 1/09 relates to exports by M/s. Sri Angalamman Agencies, T. Nagar, Chennai whereunder penalty of Rs. 2 lakhs has been imposed on M/s. SANCO Trans Ltd.,....

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....ed exporter. In this case, a penalty of Rs. 3,50,000/- has been imposed on the CHA under Section 114/ 114AA/117 on the CHA who has filed appeal No. 201/09 and a penalty of Rs. 2 lakhs has been imposed under Section 114/117 on N. Sainathan against which he has filed appeal No. 200/09. 2. The common finding against the CHA inter alia is that they did not verify the credentials of the exporter and ....

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....Mercantile Bank, Coimbatore). 3. Prima facie, the material on record is not sufficient to conclude that the CHA aided and abetted the exporters in obtaining inadmissible drawback (drawback erroneously sanctioned has been disallowed inter alia on the ground that export sale proceeds were not realized as no Bank Realization Certificates were furnished). Prima facie, there is nothing to show that th....

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....13. Penalty imposed under Section 117 is also prima facie not sustainable as the ingredients for invoking the Section which provides for penalty upto Rs. 10,000/- on any person who contravenes any provisions of Customs Act or abets any such contravention or who fails to comply with any provisions of the Act which he was duty bound to comply with are not made out in the show-cause notice or adjudic....