TaxTMI 
TaxTMI 
2024 (9) TMI 629
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....ms of the Customs Act 1962 ('Act') accepting the claim of exemption in respect of Duty Entitlement Pass Book (DEPB). As a routine measure, some of the scrips were sent for verification which raised doubts in regard to their authenticity. 2. It was thus that the chain of command in respect of the procurement of the DEPB scrips came to be examined. It was ascertained that the scrips had been purchased from an agent by name R.Somanathan and Co. in Tuticorin and a raid was conducted in their premises, which resulted in the discovery of 23 other documents. 3. The documents found in the course of search revealed that the importer had purchased 9 other licences through V.Sankaran, the appellant. Statements were recorded from the Appellant wh....
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.... were called for from all the noticees, including the Appellant, by issue of show cause notices and after a detailed consideration of the matter, an order of adjudication came to be passed on 03.05.2005. In as far as the appellant is concerned, a sum of Rs. 5 lakhs was imposed as penalty under Section 112(a) of the Act. 8. The appellant filed an appeal before the Customs Excise and Service Tax Appellate Tribunal ('CESTAT'/'Tribunal'), and the Tribunal, as a final fact finding authority, has gone into the facts in detail, ultimately showing leniency and reducing the quantum of penalty from Rs. 5 lakhs to Rs. 3 lakhs, finding the imposition of a sum of Rs. 5 lakhs, harsh. It is as against the aforesaid order of the Tribunal dated 11.02.200....
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....licences only at the stage of adjudication. The money received had also been returned. He would thus argue that the Tribunal had proceeded on assumptions and presumptions and that the penalty levied either be cancelled or, at the least, further reduced. 11. Mr.A.P.Srinivas, who appears for the respondent vehemently supports the order of adjudication. He points out that the findings arrived at by the Tribunal are all based on evidences. In any event, those findings are factual in nature and there is nothing to indicate perversity therein. Hence there is no need for intervention on any score. 12. We agree with the stand of the Revenue. We find that the Tribunal has taken note of all the relevant facts. As regards the statement of B.R.Ch....
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....hed. The findings of the CESTAT in regard to the modus operandi of the appellant are set out at paragraph 2 reading as follows: '2. The appellant was engaged in trading DEPB licences. His modus operandi was to canvas buyers by showing them xerox copies of such licences obtained from vendors. The original licence was eventually delivered to the buyer. In the present case, M/s.DCW acted upon such licence purchased from the appellant, and obtained duty-free clearance of the goods covered thereunder. The department, later on, found that the licence was fake and accordingly a case was booked against the importer and other persons including the appellant..................' 16. Paragraph 4 of the Tribunal's order which cont....