2018 (11) TMI 103

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....are substantial concessions in customs duty. The custom duty is either nil or at heavily reduced rate as compared to the normal duty if the origination of goods is not from any of the neighbouring country with which India has entered into the treatee for such preferential terms. 2. Before clearance of goods, the department had preliminary doubt about the true origination of the goods. An inquiry was therefore instituted. During the course of investigation, statements of the importers and several other persons under section 108 of Customs Act were recorded. As per the affidavits filed by the departments, such statements reveal a clandestine attempt to mis-declare the origination of goods as Sri Lanka though the goods originated from Indones....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ion. Statements of importers would indicate that in the past also, such modus operandi was employed. There is a strong prima facie evidence at this stage to believe that the goods have originated from Indonesia and Vietnam and not from Sri Lanka. The claim of concessional rate of duty was therefore wholly untenable. Counsel further submitted that there is prima facie evidence to suggest that the present petitioners are not the real importers. The real importer being one Sarfaraz Pathan. Any security given by the petitioners would not therefore be adequate to safeguard the interest of revenue when it is found that they are not the people of substantial financial means. 6. Having heard learned counsel for the parties and having perused the d....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he interest of the revenue is often times considered by the Courts. The trend during the period of time that has emerged is unless there are special facts, to release the goods on bank guarantee of a certain percentage of the probable differential duty of customs and securing the rest of the amount through personal bond. In this context, we had examined the prima facie material at the command of the department more minutely. What appears is that the department relies heavily on various statements of the petitioners and other persons including Sarfaraz Pathan to contend two things. Firstly, that the goods were not of the origination of Sri Lanka and secondly, that the real importer behind the scene is Sarfaraz Pathan, the present petitioners....