TaxTMI 
TaxTMI 
2016 (5) TMI 670
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....e records. 3. The issue involved in all these appeals is regarding diversion of consignments of goods meant for export to domestic area and consequent demand of Central Excise duty and Customs duty on the raw materials which were imported duty-free for export of the finished goods. 4. On perusal of the records it transpires that M/s Tini Pharma Ltd., the main appellant, had imported raw materials without payment of Customs duty under licences, undertaking to export the goods manufactured out of such raw materials. On a detailed investigation it was noticed that the said goods cleared from M/s Tini Pharma Ltd.'s factory were allegedly diverted to domestic area. 5. Learned Counsel appearing for all the parties as well as the learned Specia....
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....ortation done by the staff of PIC had to be ultimately recovered from M/s Tini. Again the theory that for other vouchers the word 'PIC" should have been there is illogical, as the godown itself belongs to PIC and only expenses that are recoverable should be specially identified. (2) Shri Srinivas Raju is a Tirupati based employee of M/s Tini Pharma, Shri Abhimanyu Singh is a Mumbai based employee of PIC. Both these persons have deposed to the effect that the export consignments were delivered at Mahim and not at Nhava Sheva. It is unlikely that both these persons would gain in anyway by giving such a statement. In absence of an apparent motive for these two persons fur separated from each other to falsely implicate M/s Tini, I do not....
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.... that all the export goods have been sold to M/s Nimesh Pharma. M/s Tini Pharma is thus liable to pay Central Excise duties on the goods cleared under ARE 1 for export and later diverted to the local market. They are also liable for penalty u/s Rule 25 of Central Excise Rules read with Section 1lAC of Central Excise Act. Shri Bhavin Timbadia, Shri Charles Patrick and Shri Subramaniam Devar are liable for penalty under Rule 26 of the Central Excise Rules. (5) The export obligation for the duty free import of raw materials has not been fulfilled as what has been exported was 'soapstone powder'. M/s Tini Pharma is thus liable to pay duty on the imported raw material as demanded in terms of the Section 28(1) of Customs Act '62. S....
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....rick and Shri Subramaniam Devar are liable for penalty u/s 114(iii) of CA '62. (8) The role of the CHA in this whole affair is not at all above board. Such a big fraud could not have been committed in so many consignments over such a long period of time without their knowledge and/or connivance; they cannot be as blissfully ignorant (about the whole fraudulent scheme) as they plead to be. They have failed miserably to honour the trust reposed on them (by the Department) while acting as CHAs; rather, they have betrayed the same. I, therefore, hold them as, abettors liable for penalty u/s 114(iii) ibid. Further, The CHA company appear to have violated provisions of the CHA Licensing Regulations and this aspect may be taken up by the co....