TaxTMI 
TaxTMI 
2019 (7) TMI 968
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....he market and accordingly exported through Mr. K. Prabhakaran vide the shipping bill No. 27/07-08 dated 6th June 2007. The said Mr. Prabhakaran again approached the appellant with purchase order dated 28th July 2007, in favour of the appellant's proprietary concern - M/s Baba Rocks for export of black galaxy rough stone blocks, gross size - CBM 2.626 and also of different size having gross volume 2.070 CBM. The appellant procured the requisite granite blocks/stone slabs from 'Golden granites' for Rs. 94,710 by cheque and provided the stones to the said Mr. K. Prabhakaran and issued invoices No. EXP003/2007-08 dated 1st August 2007 along with packing list. The said stone blocks were taken by the said Mr. Prabhakaran to 'Sterling Container Line Madras Private Ltd.', Chimakurthi ICD, for stuffing in the containers. M/s Sterling Container Line Madras Private Limited issued admittal form for the said stone blocks. Shipping bill No. 47/07 - 08 was filed by CHA (arranged by Mr. K. Prabhakaran). The goods were stuffed in presence of the customs officials and proper customs seals fixed as per norms. The goods were to be shipped through the port of Chennai - gateway port. 3. On some i....
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....al position and the handle came out, and that the rivets have been tempered. 6. The office premises of Baba Rocks, Ongole was searched by the officers of central excise on 10 August 2007 in the presence of MLN Sharma - Accountant. Mr. Sharma informed that they had cleared two consignments vide shipping bill No. 27/07 dated 6 June 2007 and S. B. No. 47/07 dated 3 August 2007, through ICD, Chima kurthy One Mr. K. Prabhakaran represented the foreign buyer. Further appellant by their letter dated 10 August 2007, submitted inter-alia that they have nothing to do with the seizure of red sanders and they do not have any knowledge about the same. 7. Statement of appellant - B.S. Prasad, proprietor of M/s Baba Rocks was recorded on 1 September 2007, wherein he stated that they had received partial payment for the earlier consignment on 23rd July 2007. Further he have not receive any advance payment for the present consignment. They have sent the goods under both the shipping bills based on purchase order received from 'Shanghai United Granite Industrial Trading Company'. In the statement in reply to question - who is the contact person in respect of the shipping bill, he replied that ....
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....anite blocks sent under the said two shipping bill could have been loaded in a single container instead of 2 containers, and it appeared that he had prior knowledge about substitution of red sanders for the declared cargo, the appellant replied that he had no such intuition or knowledge. He came to know about the substitution of stones with red sanders only after interception and examination by the officials. That he had allowed the use of his ICD for export, only with the intention that Mr. K. Prabhakaran would get good orders for granite export. 8. Statement of Mr. A.P. Raja of Sun Grace Logistics was recorded on 10 August 2007, who inter alia stated that, through his friend he got introduced to Mr. Prem Gupta, Director of Sun Grace Logistics. That he started working in Sun Grace Logistics as agent at Chennai. That during last week of May 2007, Mr. Prem Gupta contacted him and gave Mr. K. Prabhakaran's mobile No. and asked to provide 20 containers for Shanghai. He contacted Mr. K. Prabhakaran who informed that he is agent of Baba Export and sent container request by fax. That accordingly, he approached 'Seahorse Shipping' and booked four containers to Shanghai, got the plot pe....
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....ir ICD, the representative of Baba Rocks provided the export invoices along with packing list. Based on the above they requested the CHA to prepare the shipping bill and other customs related documents. That thereafter granite blocks pertaining to be black granite, relevant to the shipping bill was brought to their ICD on 4 August 2007. The granite blocks were stuffed in containers and sealed before the customs officers on 6 August 2007 itself. These two containers were loaded on truck No. TN 28 K 5635 and send to the gate way port at Chennai. That Mr. K. Prabhakaran introduced himself as the representative of exporter - M/s Baba Rocks, approached his staff Mr. Manoharan at their ICD. That normally they negotiate with the exporters for tariff, which is consolidated and includes all charges right from receiving cargo including stuffing and checking, documentation, sealing, etc. and transportation upto the port. But in this case, the said Mr. K. Prabhakaran undertook to arrange the container and also the transportation of the same from Chennai to the ICD and back, duly stuffed, they charged Rs. 5,000/- per container. That this is the 1st time they allowed a transporter other than the....
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....e was found. The Landlord of the said promises stated that he does not know any person named Mr. K. Prabhakaran, no such person has ever resided at the given address. Summons issued on the said Mr.K. Prabhakaran at the said given address, were returned by the postal authority with the remark - not known. Upon verification of cell phone No. 9884976922, which was being used by Mr. K. Prabhakaran, it was revealed that the connection was issued to Mr. E. Joseph. Further upon enquiry Mr. E. Joseph was also not found at the given address. Thus, the said Mr. K. Prabhakaran could not be located and enquired by the officers. 14. Letter was issued to the Regional Transport officer calling for details of the trailer used in question. In reply the RTO forwarded the details according to which the said Registration No. was that of a motorcycle. 15. Thus, it appeared to revenue that red sanders were attempted to be smuggled out of India, in the guise of black galaxy rough blocks and appeared to be liable for confiscation, along with the containers. The appellant - M/s Baba Rocks had made the export of the granite blocks to Shanghai United Granite Industry Trading Company, Shanghai, China on....
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....ed over for safe custody. He also stated that the truck which hauled the containers was neither detained nor seized. Only the containers were seized with the goods by the DRI officials. Whereas on the contrary in the Mahazar/punchnama it has been mentioned that the containers were lying in CCTL, which is wrong. It was also submitted that if the truck which hauled the containers had also been seized, the investigating agency could have definitely nabbed the real culprit - Mr.K. Prabhakaran, the mastermind and the driver Mr. Perumal who drove the truck bearing registration No.TN 28 k 5635 . 19. During cross-examination, Mr. Premchand Gupta, Partner of M/s Sungrace Logistics have stated that the containers for export were released by them, at the instance of Shri K. Prabhakara, and that nobody from Baba Rocks had approached them in this regard. Smt. Susan Verghese - Senior Intelligence Officer, DRI in her cross-examination have stated that no verification was done with respect to chassis/engine No. of the vehicle - triggering question, toll gate passing of the motors vehicle - trailer used, overseas contact of consignee - Ashraf Ali, vessel Tiger Breeze used for similar shipment in....