TaxTMI 
TaxTMI 
TaxTMI 
2017 (10) TMI 1204
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....ocuments as well as false bank realization certificate never issued by HDFC Bank, Mumbai. Sale of such scrip was made by the appellant thorough his agents and the sale proceeds of the offending scrip had gone to the bank account of the proprietary concern of the appellant. Jt. DGFT also causing enquiry found that the offending scrip was issued on the basis of false and fabricated documents for which that was cancelled. All such material facts evidenced by oral and documentary evidence failing to be controverted by the appellant, he faced penalty of Rs. 9.40 lakhs in the adjudication proceeding. Appellant in his inculpatory statements deposed his entire premeditated design in defrauding customs falsifying shipping bills, bank realization cer....
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....ined mind to deceive the exchequer, he perpetuated fraud against Revenue. Accordingly, he was liable to the penal consequence enacted under section 112(a) of the Customs Act, 1962. 7. Evidence Act does not insist on absolute proof for the simple reason that perfect proof in this imperfect world is seldom to be found. That is why under Section 3 of the Evidence Act, a fact is said to be 'proved' when, after considering the matters before it, the Court either believes it to exist or considers its existence so probable that a prudent man ought, under the circumstances of the particular case, acts upon the supposition that it exists. This definition of proof does not draw any distinction between circumstantial and other evidence. Prepo....
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....e 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....
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....ns proceeded may not have been bad. [Ref : Commissioner of Customs v. Essar Oil Ltd., (2004) 11 SCC 364 = 2004 (172) E.L.T. 433 (S.C.)]. (E) When material evidence establishes fraud against Revenue, white collar crimes committed under absolute secrecy shall not be exonerated as has been held by Apex Court judgment in the case of K.I. Pavunny v. AC, Cochin - 1997 (90) E.L.T. 241 (S.C.). No adjudication is barred under Section 28 of the Customs Act, 1962 if Revenue is defrauded for the reason that enactments like Customs Act, 1962, and Customs Tariff Act, 1975 are not merely taxing statutes but are also potent instruments in the hands of the Government to safeguard interest of the economy. One of its measures is to prevent deceptive practic....
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....ic revenue, earning of foreign exchange, economic and financial stability of the economy. Therefore such provisions are construed in a manner to suppress the mischief and to promote the object of the statute, preventing evasion, foiling artful circumvention thereof. Thus construed, the term fraud within the meaning of these penal provisions is wide enough to take into its fold any one or series of acts committed. Such act or acts when demonstrate to be reasonably proximate to the clearance of imports duty free on the basis of the DEPB scrips fraudulently obtained against false documents filed before DGFT, a trader of such scrips has to face adverse consequence of law. 10. In view of the above discussions and the result of investigation as ....