2014 (5) TMI 165

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....P K Jain: Heard both sides 2. The brief facts of the case are that the appellants imported certain goods and sold the same on High Seas Sales basis to one M/s. Resham Exports, a 100% EOU. Investigations revealed that the said 100% EOU, in reality, is not a functional unit and the goods procured by the said 100% EOU on High Seas Sales basis were diverted to open market instead of using the sa....

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....Bench that three dates of personal hearing were granted and that they did not appear for the personal hearings, ld. counsel stated that on one date, they sought adjournment and on other dates there was flood in Surat and therefore he could not appear for the hearing nor could apply for the adjournment. Ld.counsel, however stated that he is not pressing the said point as he has got a very goods cas....

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....through the adjudication order passed in the first round of litigation where the Director of the company Mr. Puneet Rungta himself appeared. From his deposition, it is very clear that they have supplied the goods to M/s. Resham Exports, a 100% EOU. The appellants were in the trade relating to import of yarn and they were fully aware that 100% EOU are eligible to clear the same goods duty free. Any....

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....Under these circumstances, it is clear that the appellants knew the activities of M/s. Resham Exports which would imply in the present case that the goods will be diverted in the open market. In view of this position, I hold that the appellants have aided and abetted in the activities of M/s. Resham Exports relating to diversion of the goods. The goods are liable to confiscation and appellants are....