2003 (5) TMI 545

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....ignments of Jasmine concrete and tube rose concrete exported to M/s. Oriental Frangrances Ltd. Switzerland the officers of Enforcement Directorate Bangalore searched the premises of the Chairman, Vice-Chairman, office and factory premises of M/s. Encee Aromatics and other places on 11-3-1986 and seized foreign currencies from Chairman and documents, Indian currency (Rs. 4,00,000) from Vice-Chairman and documents and Export documents from office and factory premises of the company appellant. 3. Statement of the Chairman was recorded under section 40 of FERA 1973, documents seized from the Chairman were accounts maintained by W/A/Hartman the buyer showing payments made to Chandappa (Chairman) made some incriminating statement that exports w....

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....Foreign buyer on behalf of noticee company. This amount was used to meet the expenses of noticee company and its expenditure as per direction of Chandappa. 4. The learned Special Director held the company guilty and imposed a penalty of Rs. 10,00,000 on the Chairman and Rs. 5,00,000 on the Chairman. Minor penalties were imposed on other notices. 5. I have heard Shri Nankani for the appellants and Dr. Shamsuddin for the respondents. 6. Shri Nankani has submitted that entire charges are based on the assumption that the invoice price at which the fragrances were exported was artificial price. He submitted that it was not case of consignment sale. The foreign buyers confirmed that they had purchased the goods at the prices shown in the invoi....

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....grounds taken in reply to show-cause notice has not been dealt with which has introduced infirmity in the order. I have gone through the lengthy replies submitted by notices which has not received proper attention of the Special Director. He should have discussed the points legal and factual in the reply to show-cause notice which has not been done. It was a complicated case which required thorough scrutiny of the points taken in the replies. 9. The order, therefore, in my opinion is not in accordance with law. Dr. Shamsuddin has submitted that the relevant points have been discussed hence no interference is called for. I think question regarding the liabilities of the company for the individual acts of the Chairman and other executives ha....