2021 (8) TMI 394

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.... that the officers of DRI, Regional Unit, Mangalore had received specific intelligence that five export containers cleared from ICD, Hassan on 20/21.01.2010 to Malaysia through Mangalore Port were not containing bentonite powder as declared by exporter M/s Pacific Impex, Bangalore but contained Muriate of Potash (hereinafter referred to as 'MOP'). MOP is a fertilizer, the export of which is restricted under the prevalent Foreign Trade Policy. Detailed investigation revealed that the appellant, Shri N.A. Jayaram of M/s Bilwa Labs, Bangalore had issued fictitious invoice for supply and transport of the export material i.e., MOP. Accordingly, a penalty of Rs. 10,00,000/- was imposed on him vide Order-in-Original No. 05/2011 ADC dated 28.02.201....

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.... same has been passed without properly appreciating the facts and the law. He further submitted that the impugned proceedings were initiated on the basis of a SCN issued by the DRI Officers and the DRI Officers were not the proper officers during the relevant period of dispute and hence, the proceedings initiated by the DRI Officers was without jurisdiction and are vitiated by law. For this submission, he relied upon the following decisions: • Commissioner of Customs Vs Sayed Ali, 2019 (26) GSTL 234 [Tri. 2011 (265) ELT 17 (SC)] • Canon India Pvt. Ltd. Vs Commissioner of Customs, 2021 (376) ELT 3 (SC). 4.1. He also submitted that the imposition of penalty for abetment is hit by the principles of res judicata as ....

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.... Mumbai). • Rajendra Prasad Vs CC, Patna, 2001 (136) ELT 925 (Tri. Kolkatta). 4.3. He also submitted that it is clear from the statement of the appellant recorded on 09.02.2010, 08.04.2010 and 29.06.2010 that he had only issued invoices for supply of bentonite powder for a consideration. The bentonite powder is natural products and freely traded item and is not a manufactured commodity and the export of which is neither prohibited nor restricted. Mere issuance of invoices for a consideration for such goods is not an offence under the Customs Act and hence, the quation of imposition of penalty cannot stand in the eye of law. He also submitted that the invoices were addressed to a planter in Sakleshpur and he had no knowledge ....