2017 (10) TMI 1135

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....nd engaged in the transfer of remittances to Hong Kong based entities, for under invoiced imports of various importers using banking channels in the name of front/ bogus firms including one M/s Samay International, B-8A, Janta Flats, Shivaji Enclave, New Delhi [IEC: 0511069324]. The modus operandi of the syndicates was that they used to submit bogus import proforma invoices in order to remit advance payments against imports to be made at a later date. However, no imports were made by them and these advance remittances were actually adjusted against the payments for undervalued imports undertaken by the importers. Pursuant to this information, searches were conducted at various premises related to M/s. Samay International on 04.01.2013 and t....

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....IEC of M/s. Samay International. 4. The show cause notice issued by DRI dated 28.1.2014 was adjudicated vide order-in-original dated 17.11.14 in which the value of imported goods was enhanced to Rs. 1.64 crores and all the imported goods were ordered for absolute confiscation under section 111(d) and (m) of the Customs Act. Penalties amounting to Rs. 8 lakh and Rs.one lakh were imposed on Shri Anil Kumar, Proprietor of M/s. Samay International under section 112 (a) (i) and section 114 AA of the Customs Act, 1962. Further, penalty of Rs one lakh each was imposed on Shri Preet Mohinder Singh as well as Shri Mukesh Arora under section 112(a)(i) ibid. Shri Ankur Gupta was also imposed penalty of Rs. 8 lakh under section 112(a)(i) ibid. Commi....

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....ished that money sent in the name M/s. Samay International was not received by the exporter abroad but by third persons. The learned DR further argued that this is a clear case of misuse of import IEC code of M/s. Samay International by Shri Preet Mohinder Singh and Shri Mukesh Arora along with Shri Ankur Gupta, for importing goods as well as making payments abroad. Accordingly, he submitted that goods were rightly confiscated and penalties imposed. In any case, goods cannot be released to Shri Anil Kumar since he has admitted that he was not the owner of the goods. 8. The case of the Revenue is that the goods imported in the name of Shri Anil Kumar proprietor of M/s. Samay International did not belong to him though his IEC code was used....

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....appellant Shri Preet Mohinder Singh, none has appeared. The main ground under which penalty has been imposed on him is that his inculpatory statement was recorded by DRI under acute pressure and threat of arrest. He has denied any hand in the smuggling activity and hence, prayed for setting aside the penalty under both sections. 10. The investigation carried out at DRI established that Shri Preet Mohinder Singh along with Shri Mukesh Arora and Shri Ankur Gupta have conspired in misusing IEC code number of Shri Anil Kumar, Proprietor of M/s. Samay International for a monetary consideration of Rs. 15000/- to Rs. 20,000/- per month. Shri Preet Mohinder Singh along with others ordered importation of mobile phones. Investigation has further e....