2017 (12) TMI 282

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....o such notice. Noticing that Revenue's interest has been prejudiced, the matter has been taken up for hearing with assistance of Revenue and disposed by this common order having arisen out of common cause, on the basis of material available on record including the ground of appeal. 2.1 Adjudication proceeding was completed by order dated 11.07.2007 against appellants issuing show-cause notice on 22.06.2006, considering their defence plea as well as evidence on record. Adjudication resulted with the consequence of absolute confiscation of seized 13.5 MT of soap stone powder packed in 540 carbouys covered by 14 shipping bills filed by M/S. Sai Shradha Exim Pvt Ltd. (hereinafter referred to as "SSEPL") which were exported misdeclaring t....

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....ion of description of goods and value appearing in shipping bills was thereby established and that remained uncontroverted by all the appellants. Such examination result brought all the three appellants to the fold of investigation. They were unduly enriched by DEEC benefit at the cost of Revenue. 2.3 Search was conducted to the premises of M/s Sai Shraddha Exim Pvt. Ltd. (in short "SSEPL") on 29.11.2005. Incriminating documents were recovered from their premises in the course of search which proved its procurement of bulk drug from M/s Surya Pharmaceutical Ltd. against form No. CT-1, but such goods were not exported. The appellant M/s Petrosolv India Company was the conduit who arranged purchase of stone soap powder from M/s Udaipur Min....

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....ri Subramaniam Devar who arranged to bring the soap stone powder to the godown of M/s Petrosolv India Company and stored therein for packing. Packing materials were arranged in the name of M/s Sai Shradha Exim Pvt Ltd. which came to the said godown. The sellers of such goods confirmed the sale. He also arranged transportation of the exported goods from the godown premise to Punjab Conware, Nhavasheva. This was confirmed by the transporter BLR Transport Pvt. Ltd. Even seller of stone soap powder M/s Udaipur Minerals Development Syndicate Pvt. Ltd. established the sale thereof to SSEPL. 2.7 In his statement one Mr. Charles Patrick, Managing Partner of M/s Petroslov India Co. admitted that Shri Subramaniam Devar was appointed as their logis....

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....of misdeclared goods. Their plea that they were not aware about the activities of Shri Subramaniam Devar remained in myth when investigation brought on record their awareness and involvement in substitution of goods by stone powder and purchase of empty barrels, carbouys as well as soap stones powder, followed by packing and transpiration thereof. Export formalities were completed by M/s Sai Shipping Agency involving all the three appellants. Accordingly they were held liable to penalty of ?15 lakhs each under section 114 (i), 114 (ii) and 114(iii) of the Customs Act 1962. That is hereby confirmed in absence of any evidence to the contrary and their appeal dismissed. Appeal No. E/1363/07 4. Revenue is in appeal against the adjudicatio....