TaxTMI 
TaxTMI 
2023 (6) TMI 1016
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....corin and by their investigation report dated 05.06.2010, it appears to have come to light that the Import Export Code (IEC) of various exporters were being misused by few individuals for fraudulent exports of low quality shoe uppers, etc., thereby availing ineligible duty drawback without realization of any export proceeds. 1.2 Based on the above, it appears that the Revenue entertained a doubt that the appellant herein had violated / failed to fulfil the obligations cast upon them under Regulations 10, 13(a), 13(b), 13(d), 13(o) and 19(8) of the CHALR, 2004. 2.1 It appears that on 21.05.2010 i.e., much before the aforesaid investigation report by the DRI (dated 05.06.2010), statement of one Mr. D. Ananda Raj, Partner of the appellant-CH....
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....ubai under drawback scheme. (v) They did not have the IE Code, for which Mr. M. Vijay Anand was asked to furnish the same on commission basis; (vi) He approached one Mr. T. Joseph John Britto (alias John), Tuticorin, who, according to him, was an agent for taking IE Codes and also provided him with 11 IE Codes; (vii) He offered a commission of Rs.5,000/- per IE Code for every consignment and utilized all those 11 IE Codes in the export of leather shoe uppers during a seven-month period; It appears that a further statement of Mr. M. Vijay Anand was also recorded on 10.04.2010 wherein it appears that he has not denied the role played by him. 3.1 In the above backdrop, in the Show Cause Notice dated 19.06.2012 issued to the appellant, ....
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....ustoms, Custom House, Tuticorin vide reply dated 18.12.2012 wherein they appear to have pleaded that they had an unblemished record for the last over sixty years and their firm is one of the oldest firms in Tuticorin Port; though reliance has been placed on the statements of various persons, but however, the fact remains that the appellant-CHA was not directly involved in any of the activities resulting in the alleged infringement. They also appear to have pleaded, in view of the specific admission by Mr. M. Vijay Anand, that the revocation of their CHA Licence could be highly disproportionate and hence, they requested for a lenient view. 5. The Commissioner of Customs, Tuticorin, however, vide impugned Order-in-Original C.No.VIII/13/01/19....
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....hich is a serious irregularity which makes the impugned Order-in-Original non est in the eye of law. For this reason also, he would submit that the order of revocation in the impugned order is liable to be set aside. 8.4 Without prejudice to the above, he would also submit that the appellant has been holding CHA Licence for more than sixty years and had no antecedents of infringements or violations of any regulations and therefore, the suspension order would deprive the appellant of their livelihood and also of their employees. 9. Per contra, the learned Assistant Commissioner supported the findings of the lower authorities. He would also submit that there has been loss to the exchequer because of the fraudulent exports, which had resulte....
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....ettled position of law that courts have clearly held that not following or not adhering to the time-frame prescribed under the Regulations is detrimental to the Revenue, which means no action, including revocation, could be ordered. 11.3.1 Admittedly, there are two inquiry / investigation reports on record - one as early as in 2010 by the DRI authorities, based on which the licence of the appellant was kept under suspension. If this is considered as the inquiry report, then, the order of revocation vide impugned Order-in-Original which was passed in 2013 is clearly beyond the time-limit prescribed under the statute. 11.3.2 If the second / other inquiry report by the Assistant Commissioner is considered, which is in November 2012, then, ag....