TaxTMI 
TaxTMI 
2017 (10) TMI 1139
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....er was investigated, it came to light of Revenue that the documents filed before Jt. DGFT to obtain the DEPB scrips were fake including the BRC bearing No. 0305023 dated 16.07.1998 claimed to have been issued by Union Bank of India, Bandra, Mumbai. The DGFT, Mumbai cancelled the offending scrips. But using such fraudulently obtained DEPB scrips, import made by Unique Exim was claimed to be duty free. Such claim was denied by Customs. 2. On 15.01.1999, appellant stated to the investigation that he was partner of M/s Platinum Exports along with one Shri Deepak Agarwal @ Dabbu and Shri Lalit Goswami and gained experience of defrauding Government selling DEPB scrips obtained under fraud from Jt. DGFT without making any physical export. According to investigation, these persons were involved in sale of ab initio void DEPB scrips in the market, obtaining that under fraud. Shipping bills were filed in the name of non-existing firms viz., M/s. Pacific Corporation, M/s. Pearl Exports, M/s. Universal Trading Co. and M/s. Unique Exim before Customs and those were taken back after passing thereof by the Custom Officers. Deepak also floated a firm called M/s. Pegasus Manufacturing Co., showing....
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.... Shri O.P. Ahuja was investigated. It was noticed by Revenue that sale proceed of DEPB scrip came through bank drafts and such drafts were encashed by Shri Aziz getting 5% commission. Signatures of Bank officers were forged and bank accounts were opened to deposit the Demand Drafts came from illegal sale proceeds of the scrips of the aforesaid nature. 3. The manner in which the appellant acted as above, he proved himself to be an offender under Customs Act, 1962 causing detriment to the interest of Customs. His defence plea that it was innocent was discarded by the adjudicating authority on the basis of probe result demonstrating his fraud and forgery committed, as discussed above. 4. None present for the appellant. 5. Revenue submits that fraud committed by appellant in the manner stated in the adjudication order proved his contumacious conduct and deliberate intention to cause evasion committing fraud against Revenue for which his appeal should be dismissed in absence of any evidence to the contrary led by the appellant. There is no rebuttal by the appellant against the probe result aforesaid without any good reason advanced by the appellant or any cogent or credible evidence ....
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..... - 2004 (172) E.L.T. 433 (S.C.) it has been held that by fraud is meant an intention to deceive; whether it is from any expectation of advantage to the party himself or from the ill-will towards the other is immaterial. Fraud involves two elements, deceit and injury to the deceived. (B) Undue advantage obtained by the deceiver will almost always cause loss or detriment to the deceived. Similarly a fraud is an act of deliberate deception with the design of securing something by taking unfair advantage of another. It is a deception in order to gain by another's loss. It is a cheating intended to get an advantage. (See : S.P. Changalvaraya Naidu v. Jagannath [1994 (1) SCC 1 : AIR 1994 S.C. 853]. It is said to be made when it appears that a false representation has been made (i) knowingly, or (ii) without belief in its truth, or (iii) recklessly and carelessly whether it be true or false [Ref : Roshan Deen v. Preeti Lal [(2002) 1 SCC 100], Ram Preeti Yadav v. U.P. Board of High School and Intermediate Education [(2003) 8 SCC 311], Ram Chandra Singh's case (supra) and Ashok Leyland Ltd. v. State of T.N. and Another [(2004) 3 SCC 1]. (C) Suppression of a material fact would ....
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.... laid down by Apex Court in the case of CC. v. Candid Enterprises - 2001 (130) E.L.T. 404 (S.C.). Non est instruments at all times are void and void instrument in the eyes of law are no instruments. Unlawful gain is thus debarred. (G) Fraud and justice do not dwell together for which penal provisions are enacted to eradicate evils of defrauding Revenue which is anti-social activity adversely affecting public revenue. Such provisions are construed in the manner which curbs the mischief, promote their object, prevent their subtle evasion and foil their artful circumvention. Thus construed, the term fraud within the meaning of these penal provisions is wide enough to take in its fold any one or series of unlawful acts committed or omissions made. An act of fraud on Revenue is always viewed seriously. "Fraud" and collusion vitiate even the most solemn proceedings in any civilized system of jurisprudence. It is a concept descriptive of human conduct either by letter or words, which includes the other person or authority to take a definite determinative stand as a response to the conduct of the former either by words or letter. 10. Penal provisions are enacted to suppress the evils of....