2019 (5) TMI 611

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....eral) Mumbai. By the said order Commissioner has held as follows: "22 In view of the above I pass following order: (1) The duty free raw material imported by M/s Surya Pharmaceuticals Ltd valued at Rs. 1,16,21,395/- are confiscated u/s 111(o) of CA'62. I order enforcement of the conditions of the Bond executed by the importer and impose a fine of Rs. 30,00,000/- (Rupees Thirty Lakhs only) on M/s Surya Pharmaceuticals Ltd in terms of Section 125 of the CA'62. (2) I confirm a duty of Rs. 48,83,442/- along with interest on M/s Surya Pharmaceuticals Ltd in terms of Section 28(2) and Section 28AB of CA'62 (3) I impose a penalty of Rs. 10,00,000/- (Rupees Ten Lakh only) on M/s s Surya Pharmaceuticals Ltd in terms of Section 112(a) of ....

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.... held liable for confiscation u/s 113h(i). However the same are already exported and not available for confiscation. (8) I impose penalty as under on the following persons for their acts of commission/ omission which have rendered the above mentioned export goods liable for confiscation. i. Rs. 25,00,000/- (Rupees Twenty Five Lakhs Only) on M/s Sai Shradha Export Pvt Ltd u/s 114 (iii) of CA'62 ii. Rs. 20,00,000/- (Rupees Twenty Lakhs Only) each on Shri Bhaskar Kolkkat and Shri Rajashekar Pillai u/s 114 (iii) of CA'62 iii. Rs. 40,00,000/- (Rupees Forty Lakhs Only) each on Shri Charles Patrick and Shri Subramaniam Devar u/s 114 (iii) of CA'62 iv. Rs. 5,00,000/- (Rupees Five Lakhs Only) on M/s Petrosolv India Co u/s 114 (iii) of....

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....al market and SSEPL filled empty carbuoys with soap stone powder in Mhape godown of M/s Petrosolv India Company (PIC) and exported the same by mis-declaring as "Pharmaceutical Bulk Drugs" under 14 DEEC Shipping Bills and the 14 ARE-1's recovered. 2.3 Though it is apparent that duty free imported goods under DEEC License were used in the manufacture of goods meant for export, but failure to export the same vitiates and contravenes the provisions and conditions of such duty free imports. Hence the duty free imports of inputs as well as the finished goods containing such inputs become liable for confiscation besides warranting penal action against the errant persons. 2.4 Similar investigations were carried out in respect of 66 Shipping Bil....

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....ere partners in fraud and co-operated with the Shri Subramanian in the entire fraud. Shri Charles Patrick masterminded the misdeclaration of export goods and allowed his infrastructure, godown and personnel for storage/ substitution and other activities relating to frauds. He was main beneficiary and key player since he was managing the export affairs of SSEPL through his aides, Shri Subramaniam Devar and Shri Suresh Pandey. He was found siphoning off the entire amount received by M/s SSEPL in its accounts purportedly as export remittances. The amounts received in the account of M/s SSEPL was in turn paid purportedly towards supply of export goods to nonexistent suppliers which in turn was found to be encashed by Shri Charles Patrick throug....

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....fraud committed by the exporters, by presenting the soapstone powder instead of declared goods namely pharmaceutical products. Even the show cause notice and order in original do not record any act on their part which had rendered the goods liable for confiscation. By filing the papers as submitted to them by importer/ exporter they have performed the function assigned to them under CHALR, 2004 and in case of any misconduct on their part under the said regulations, necessary action needs to be taken in terms of the said regulations. In fact action has been proposed against them under the said regulations and Commissioner Customs (General) Mumbai has vide his order CAO No 175/2009/CAC/CC(G)SLM/CHA (Admn) dated 18.12.2009, forfeited the entir....