2024 (6) TMI 144

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....d 16.05.2018 passed by the second respondent, thereby imposing penalty of Rs. 9.62 lakhs. 2. The petitioner company is engaged in the manufacture and export of commodities such as dimensional granite blocks, processed, dressed, cut and granite slabs. It's export oriented unit holding Letter of Permission dated 21.12.2004 issued by the second respondent. It was subsequently extended from time to time. It was issued to the petitioner for its factory located at No.145, Injambakkam, Chennai - 41, for export. 3. The process of manufacturing is that the mother rock, which is approximately about 700 to 800 cubic meters in size is cut. Further cut into smaller blocks and from these blocks, the trimmed dimensional and dressed blocks are pr....

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....ed 24.03.2017, stating that by exporting Rs. 961.79 lakhs worth of dimensional blocks during the year 2011-16, directly from the quarries, which were not licensed premises under the Letter of Permission, thereby the petitioner contravened the provisions of Section 11(2) of the Foreign Trade (Development and Regulation) Act, 1992, (hereinafter referred to as "the Act") as such, the petitioner was caused show cause notice as to why adjudication proceedings as contemplated under Section 13 of the Act, should not be initiated against the petitioner for imposition of penalty under Section 11(2) of the Act. 7. Though the petitioner submitted explanation the same was not considered and enquiry was conducted and the petitioner was imposed penalt....

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....T.214 (Mad.) in the case of the Jewels Magnum Vs. Development Commer., MEPZ-SEZ, Chennai, which held as follows :- 28. The learned counsel for the petitioner relied on the Full Bench decision of this Court in the case of (State of Tamil Nadu v. Nu-tread Tyres) (2002) 142 STC 256 (Madras) wherein the Full Bench of this Court has held that the person who makes a declaration must do so with full knowledge that the declaration so made by him is not correct or he made such declaration knowing it to be false. It was held by the Full Bench of this Court that in such case, the authorities must satisfy themselves that there appears an element of mens rea on the part of the assessee to make false representation or misdeclaration with full kn....

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....ner has not made any misrepresentation or misdeclaration to cheat the exchequer or there is any mens rea on the part of the petitioner to do so. In such view of the matter, in the absence of any ill-intention or mens rea on the part of the petitioner to gain unlawfully by exporting goods which are not permitted to be exported by them as per the LoA, as has been held by the Full Bench of this Court, the respondent is not justified in imposing penalty." 9. Heard the learned counsel appearing on either side and perused the materials placed before this Court. 10. On perusal of counter filed by the respondents and on the submission made by the learned Special Panel Counsel appearing for the respondents revealed that, the Letter of Permissi....