TaxTMI 
TaxTMI 
2018 (1) TMI 1186
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....ourt for discharge is that they were prosecuted for the offence under Sections 120B r/w 420, 468, 471 IPC and Sections 132 and 135 of the Customs Act for the alleged mis-declaration of goods imported in to India under duty exemption entitlement certificate scheme[DEEC] using false and fabricated documents as genuine. Pending investigation of the case, Government of India introduced Kar Vivad Samadhan Scheme, 1998 wherein cases of this nature were allowed to be settled under the scheme and such settlement will immune the parties from all prosecutions arising out of such mis-declaration. Since they are immuned from criminal prosecution, in view of the settlement under Kar Vivad Samadhan Scheme 1998, no prosecution could be continued. 3. Th....
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....dismissed the discharge petition, which requires consideration. 4. Heard the learned counsel appearing for the petitioners and the learned Special Public Prosecutor for CBI Cases and also the counter filed by the respondent. 5. On perusal of the records submitted by the learned respective counsels appearing for both sides, this Court finds that initially CBI has filed final report against these petitioners and others for offence under Section 120B r/w 420, 468, 471 of IPC alleging that they were entered into conspiracy to cheat the Government of India by importing 'cassia' under Duty Exemption Entitlement Scheme (DEEC) without payment of customs duty due to such goods and by dishonestly exporting sub-standard oil instead of &#....
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....icate has been obtained fraudulently. Thus, after importing cassia without extracting oil and exporting it the accused had diverted the cassia but created the document as if the oil has been extracted and exported. Thereby had committed the offence under Sections 120B r/w 420, 468 and 471 of IPC. 8. Later in the second charge sheet, as a result of further investigation conducted by the respondents, they have found that by the above said criminal act of conspiracy cheating and fabrication of document being used as genuine, the accused persons have also cheated the Government of India its legitimate custom duty of Rs. 22.7 lakhs due on the imported cassia valued at Rs. 27,97,998/- and had deliberately misused DEEC Scheme for their personal....
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....y, subject to the provisions contained in the Scheme, from instituting any proceeding for prosecution for any offence under any indirect tax enactment or from the imposition of penalty under said indirect tax enactment, in respect of matters covered in the aforesaid declaration made by the declaration." 12. In the light of the provision of Kar Vivad Samadhan Scheme 1998 as well as the order passed by the Commissioner of Customs, the plea of the petitioner that by availing the benefit of Kar Vivad Samadhan Scheme 1998 will grant them immunity for all the prosecution under all enactment is unfound. It is to be pointed out that the trial Court had taken note of the immunity granted by the Customs Department and in view of the settlement arr....