TaxTMI 
TaxTMI 
2012 (6) TMI 818
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....s on record, one M/s. Megna Impex, 7 - Sehdev Market Jalandhar, exported certain goods under the claim of DEPB scheme. The goods were described in the 33 shipping bills as 'crank shaft for high speed compressor" having DEPB credit of 14%. However investigations conducted by Anti Smuggling Wing of Customs (Prev) Commissionerate, Amritsar revealed that said description was changed/altered to the 'timing shaft for mercedes truck' having DEPB credit of 22%, by substituting/swapping the documents. Whereas the duplicate copies of shipping bills and the other related documents available with the Customs at CFS, Ludhiana showed the description of export items as "'timing shaft for mercedes truck' and the other export promotion copy and DEPB of the shipping bills resumed from the office of Joint Director General of Foreign Trade, Ludhiana also contained the description as above. The copies of GRs submitted with the bank showed the description of goods as 'crank shaft for high speed compressor." 3. During the course of investigation, statement of various persons were recorded. M/s. Magna Impex is the proprietorship concern in the name of Shri Satbir Singh. Shri Sat....
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....submits that only piece of evidence against the appellants is the statement of Shri Ashok Kumar, wherein he deposed that unlawful income out of fraudulent export was to be shared between Shri Ashok Kumar and appellant in the ratio of 40%, 40% and 20%. He submits that apart from the said statement of Shri Ashok Kumar, there is nothing on record to implicate him. The statement of Shri Ashok Kumar being in the nature of statement of co-accused cannot be relied upon solely, without being their any evidence to that effect. As regards his employee, having no financial means to undertake huge exports, being the proprietor of export firm, i.e. M/s. Megna Impex, he submits that there is no evidence on record to show that he was a party to the creation of the said proprietary concern with intent to indulge in the clandestine activities. The entire evidence on record shows that it was Shri Ashok Kumar, Shri Gurkirpal Singh who connived with his employee to float the said concern and undertaken fraudulent exports. He submits that he was only engaged in the preparation of documents for DGFT as a qualified chartered accountant and in such a situation, he cannot be held responsible for aiding and....
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....are detected by any agency they should not be held responsible but only a small time employee of Shri Pavitar Singh is caught, being the proprietor of M/s. Megna Impex. Shri Ashok Kumar further clarified that profits from the said export were to be distributed between Shri Gurkirpal Singh, himself and Pavitar Singh in the ratio of 40% and 40% and 20%. He also detailed the modus operandi adopted by them for remitting the value of the exports from the banks accounts, receiving back the money through hawala operators in Dubai and getting the blank cheque books from Shri Satbir Singh, proprietor of M/s. Megna Impex, He also disclosed the details of his visit to Dubai and arranging the journey of Shri Satbir Singh to Dubai. He further offered to pay the DEPB benefit availed by him and Shri Gurkirpal Singh. He also disclosed the names of the buyers, who purchased fraudulently obtained DEPB scrips. 9. Learned AR further submits that Shri Satbir Singh. Proprietor of M/s. Megna Impex is a low paid employee of Pavitar Singh and from the statement of Shri Ashok Kumar, it becomes clear that M/s. Megna Impex was floated as a dummy unit. The appellant played active role in floating and runnin....
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....Ashok Kumar, the appellants was also one of the beneficiary to the illegal action, though the appellant has himself denied so. We proceed to discuss various evidence relied upon by the adjudicating authority as well as by appellate authority and the evidence placed on record by the appellants. 14. Strong reliance stand placed by the revenue on the statement of Shri Ashok Kumar, who had deposed that appellant was also a share holder in the illicit gains to the extent of 20%. We note that apart from Shri Ashok Kumar, no other person concerned with the case i.e. either Shri Gurkirpal Singh or Shri Satbir Singh has deposed to the effect that the appellant was to get 20% of the profit made by the firm. The appellants himself, in his statement recorded during the course of investigation has denied the fact of getting 20%. The question which arise is as to whether the said statement of Shri Ashok Kumar can be pressed into service so as to implicate the appellant. Admittedly, the said statement is in the nature of statement of co-accused and requires corroboration from independent sources. There being none, the said statement cannot be made sole basis for holding against the appellant, ....
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....i Pavitar Singh with a motive that he being an employee of Chartered Accountant, can be of help in any future unforeseen difficulties. Infact, the said fact stands accepted by Shri Ashok Kumar in his initial statement that he and Shri Gurkirpal Singh floated the dummy unit of Shri Satbir Singh as proprietor with a motive that it will be Shri Satbir Singh who will be caught in a future difficulty. In the absence of any deposition by any person in their statement, about the active role played by Shri Pavitar Singh, we find it difficult to hold him liable for the penal action. 17. Shri Pavitar Singh, in his statement recorded during the course of examination deposed that Shri Ashok Kumar and Shri Gurkirpal Singh floated M/s. Megna Impex with proprietor Shri Satbir Singh, and he was only doing the paper work for such floatation and for the export purpose, for filing of applications and documents before the government authorities. The fact of recovery of said document along with stamp of M/s. Megna Impex was on account of his handling the professional work of the said export unit. He has deposed that he was not handling any shipping bills or filing of any documents before the Customs....