TaxTMI 
TaxTMI 
2019 (6) TMI 971
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....it as maize-corn under HS code 10059000, thus availing undue benefit of DFIA. The report further indicated that the exporters had obtained the DFIAs by exporting the Corn Starch, Maize Starch Powder, Protein concentrate Corn Gluten, Liquid Glucose, Maize Corn Starch in which locally procured agricultural products like maize-corn/ sweet corn had been used as the main ingredient. The DFIA holders have either imported Popcorn by declaring the same as maize-Corn or transferred their DFIAs to others who had imported Popcorn by declaring the same as Maize-corn, which is in contravention to the provisions of Para 4.12 of the Foreign Trade Policy. In the offence report it is alleged that some of the parties engaged in mis-declaration of import and availing benefit of DFIA are M/s Chef Choice IEC no. 0507043588, M/s Hira Traders (IEC No. 0489005667) M/s Encanterra Traders Private Limited (IEC Number-0516951530). Out of these, M/s Encanterra Traders Private Limited have been found to be non-existing. Further, it has come out in the investigation that the appellant - CHA firm have facilitated the said M/s Encanterra Traders Private Limited in export of Protein concentrate Corn Gluten. Shri La....
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....ephone. They also submitted the print out of the e-mails exchanged and after completion of the clearance work they raised their CHA bill in normal course. 4. Further, on being specifically questioned whether they verified the antecedent of the said M/s Encanterra Traders Private Limited , Shri Sharma replied that he did not verify the address of the said company and thus there appears to be some error on their part. Further, on being asked to submit authorisation received from the said company, it was replied that the same shall be submitted. 5. It further appeared to Revenue that one M/s Chef's Choice, to whom maize pop-corn was despatched by the overseas seller, resold the goods to M/s Encanterra Traders Private Limited, on high sea sale basis, which appear to be a modus operandi for use of advance authorisation/ DFIA of M/s Encanterra Traders Private Limited, to get the imported corn released without payment of custom duty. After the import, the imported goods / corn was kept in the godown of M/s Chef's Choice under their control and possession and they distributed the benefit of exemption between them and the said M/s Encanterra Traders Private Limited. It further appear ....
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....ed and verified by the proper officer of the custom and on being satisfied, they had given the 'let export order' of the said goods and also issued the eligibility for DFIA. Further, the said M/s Encanterra Traders Private Limited had imported the disputed goods vide two Bills of Entry, which were filed at Chennai Sea Port and goods were declared Pop Corn-maize under Notification No. 19/2015 dated 01.04.2015, and thus availed the DFIA benefit. During investigation by Revenue it has come on record that the said M/s Encanterra Traders Private Limited have filed various Bills of Entry for popcorn through various custom brokers namely M/s Embee Clearing and Shipping Services, SIP Dhanasekharan and Company, etc. Further, Shri Anil, employee of the CHA company was in constant touch with M/s Encanterra Traders Private Limited through its director Shri Rakesh Kumar and their authorised signatory Shri Manoj Kumar and also visited their office and met with Shri Rakes Kumar, Director. Further, the necessary KYC documents were received by them alongwith the authorisation to do the clearance work of the shipping bill or export of goods. Further, there is no allegation in the offence report whic....
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....t is involved either in the issue of DFIA script nor its subsequent usage by import of maize popcorn by misdeclaring the same as maize-corn. Further, there is no averment in the offence report that the appellant CHA knowingly connived with the said M/s Encanterra Traders Private Limited. Further, appellant has discharged their obligation as required under CBLR, 2018 or the precedent regulation, and the respondent authority have mechanically suspended their licence on the basis of vague allegation, which have no legs to stand. 10. Learned Authorised Representative for Revenue have relied upon the impugned order. 11. Having considered rival contentions, we find that the allegations of Revenue against the appellant CHA are prima-facie vague for the reason that the offence report is based on one show cause notice No. 121/2018, issued in September, 2018 on the aforementioned parties being M/s Encanterra Traders Private Limited, M/s Chef's Choice, M/s Hira Traders and their Directors/Partners / Prop. wherein the appellant CHA has not been made a co-noticee. Further, there is no allegation of connivance on the part of the appellant CHA firm with the aforementioned parties. Further, ....