TaxTMI 
TaxTMI 
2010 (1) TMI 592
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....5 and 5.65, while investigation revealed that the value would be only between USD 0.50 to 2.00, and imposed penalties inter alia on the partners of M/s. Sivam Textiles, penalty of Rs. 5 lakhs on Shri Uday Patravali who has been treated as the main brain behind the illegal export, under the provisions of Section 114(3) for abetment of the offence of misdeclaration of value so as to obtain inadmissible drawback, and penalty of Rs. 1 lakh each on Shri C. Selvaraj, partner of the exporter-firm and upon M/s. A.V. Thomas & Co. Ltd., CHA under Section 117 of the Customs Act, 1962 for abetment of commission of the above offence. 2. The finding of the adjudicating authority is that Shri Uday Patravali was in possession of drawback cheque of Rs. 14,....
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....for M/s. Sivam Textiles including opening of cur rent account with the two banks, statements of manufacturers and suppliers of the exported goods, statement of Shri S. Saravanan of the CHA who confirmed that the documentation work was given to the CHA by Shri Uday Patravali and the drawback cheque was also received by Shri Uday Patravali. The Commissioner has also relied upon the investigation to the effect that Shri Uday Patravali has received Rs. 5 lakhs under Cheque No. 375782 dated 21-11-2001 from the ac count of M/s. Sivam Textiles out of the total drawback amount sanctioned by the department. The finding against Shri C. Selvaraj is that he along with one Shri S.P. Subramaniam had created a false document namely 'release deed' in order....
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....y Shri Uday Patravali as per the advise of Mr. Murthy that Shri Uday Patravali had attended to the documentation for export and for opening of bank accounts and that the entire drawback amount of over Rs. 17 laths was distributed by Shri Uday Patravali. Shri V. Dechinamoorthy also confirmed that Shri Uday Patravali had done all the work relating to export for Shri Gowrisankar of M/s. Shivam Textiles. Statements of manufacturers and suppliers of the exported goods namely, Shri Velusamy of Amerdy Garments, Shri C. Selvaraj of M/s. Sumotex and Shri R.C. Chandrasekaran of M/s. Shobika Exports, further established the major role played by Shri Uday Patravali in the fraudulent export, the CHA also confirm....
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....ailed to ensure that all documents prepared or presented by them on behalf of the clients were strictly in accordance with the orders relating thereto and hence liable to penalty under Section 117 for violation of clauses (a), (d), (e), and (1) of the CHA Licensing Regulations, 1984. 1 note that failure to obtain authorization has been held not to be a violation of Regulation 14(a) of the CHALR, 1984 as the shipping bills signed by the exporter have been accepted to be implicit authorization to a CHA who is admittedly employed by the exporter, in the case of Maruti Transports v. Commissioner of Customs, Chennai [2004(177) E.L.T. 1051] and Trinity Forwarders v. Commissioner of Customs, Chennai [2005(192) E.L.T. 407]. This is all the more so ....