TaxTMI 
TaxTMI 
2018 (10) TMI 1855
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....Bangalore. During February, 2013 when appellant's maternal cousin Shri Anirudh Palta asked him to accompany him to visit his (Anirudh's) brother- Bhavuk Palta, who has been residing in Hong Kong for the past 7-8 years. Shri Anirudh had told him that his brother Bhavuk had asked him to visit Hong Kong along with 6-7 friends. Expenses for the visit were to be borne by Shri Bhavuk Palta. 3. The appellant along with his elder brother, Shri Anchit Badhwar, maternal cousin, Shri Anirudh Palta and four others, who were introduced to him by Anirudh as S/Shri Heera Lal, Vikas and Devi Lal had gone to Hong Kong on 19-2-2013. 4. The appellant along with others (named above), had stayed at Hotel Ramada, at Hong Kong for 7-8 days. Ticket....
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....noticee was informed of the bank account number opened in HSBC Bank. 9. During the appellant's stay at Hong Kong and after his return from Hong Kong, he did not undertake any transactions in the bank accounts opened by him in Hong Kong. Furthermore, the appellant have no knowledge of opening of any company in the name and style of M/s. Moral Colour Limited, Hong Kong by him (appellant) during his short stay at Hong Kong. Only on 30-4-2014, when the appellant appeared before the officers of Directorate of Revenue Intelligence in compliance to summon issued to him, the appellant came to know about the Company - M/s. Moral Colour Limited, Hong Kong, which has reportedly exported Rough Diamonds to M/s. Jintendra Gems Pvt. Ltd., Surat, G....
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....used the bank account after opening, it requested the HSBC Bank to provide details of all the transactions that have been done from this account from opening till date and to freeze the said account immediately so that no further transaction can be done from it. 11. A similar letter was also written to the Branch Manager, Hang Seng Bank, Central Branch, Hong Kong on 18-7-2014. 12. The HSBC Bank, Hong Kong vide their letter Ref.:140605- G020000006S, dated 6-6-2014, in response to the letter dated 20-5-2014 written by the appellant for providing details of the business account and transaction advice of M/s. Moral Colour Limited (A/C 652-199225-838) had intimated that the above business account was closed on 12-2-2014. 13.&e....
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....ed with the Central Registry, Hong Kong on 4-1-2013 whereas the appellant had gone to Hong Kong for the first time on 20-2-2013. 19. It is submitted that the appellant has never dealt with this company in any manner till date. 20. The appellant was also shown the copies of documents relating to Returns of Allotment in M/s. Creation Aim Limited. While admitting that signature on these documents were that of the appellant, it was emphatically submitted that no money was paid by the appellant for the shares shown in the said document. All the expenses in regard to opening the company and bank accounts were born by Sh. Neelesh Bhandari. 21. However, appellant was surprised to receive Show Cause Notice No. DRI F. No. 33A/....
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.... in Hong Kong were being misused, the appellant had written to the banks to freeze those accounts. 24. It was also submitted that provisions of Section 114AA of the Customs Act, 1962 were not attracted in the case of the appellant as he had neither knowingly or intentionally made, signed or used nor had caused to be made signed or used any false declaration etc. and it was only his lack of knowledge and innocence, which was misused by his cousins in obtaining his signatures on various documents. 25. The appellant had returned from Hong Kong on 26-2-2013 whereas the misdeclared consignments of Rough Diamonds, which were eventually seized by DRI on 26-11-2013 had arrived at Air Cargo, New Delhi on 11-11-2013 and 26-11-2013 res....
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....d also became its Director. Thus, the appellant has done acts of omission and commission and are liable for penalty under Section 114AA of the Customs Act. 30. Ld. Counsel for the appellant urges the facts that the appellant was a student at the relevant time studying in the Institute of Hotel Management, Bengaluru. The appellant unknowingly has been used by his cousin, Anirudh Palta and Bhavuk Palta in connivance with the Neel Bhandari by giving them offer of free tour of Hong Kong. The appellant due to lack of understanding and being ignorant about the evil desire of his cousin unknowingly signed the documents of bank account in connection of the company in the name of Moral Colour Limited at Hong Kong. The appellant has nowhere d....