TaxTMI 
TaxTMI 
TaxTMI 
2025 (11) TMI 1042
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.... under Section 114(iii) of the Customs Act, 1962. 2.1 Briefly stated the facts are that M/s. R.K. Exports, Tirupur filed 13 Shipping Bills at ICD, Tirupur grossly inflating the value in order to obtain ineligible drawback. 2.2 The Appellant had filed 5 Shipping Bills viz., Nos. 39319, 39320 & 39321 all dated 06.11.2003 and Nos. 43922 & 43924 both dated 20.12.2003 on behalf of the exporter M/s. R.K. Exports, Tiruppur. 2.3 On the basis of intelligence, DRI Chennai have conducted investigation on these exports resulting in issuance of the Show Cause Notice dated 18.10.2006 under Rule 16 and 16A of Customs & Central Excise Duty Drawback Rules, 1995 read with Section 75(1) of the Customs Act, 1962 for recovery of drawback sanctioned. It....
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....i. That the CHA had not played any role in the mischief planned and carried out by the exporter who had purportedly issued the Bill of Lading showing one destination as per Shipping Bills and another Bill of Lading showing port of discharge as Dubai. The Appellant had contended that the exporter submitted the Bills of Lading issued as per the destination shown in the Shipping Bills to Customs for claiming duty drawback; ii. That investigation did not implicate the CHA and the appellant did not have any connection with any fraud committed by others. He has submitted that the role of CHA ceases soon after the goods have been cleared on let export order and handed over to the custodian. iii. That issuing Show Cause Notice its....
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....s packing list, invoice and IEC code provided by the exporter and also declared as such in the shipping bills by the exporter. It is further submitted that there has been no dispute or objection as to the above material particulars as incorporated in the shipping bills vis-à-vis its associated documents and declarations based on which the shipping bills were filed by the appellants, either at the time of examination for export or in the Show Cause Notice. In the circumstances, it cannot be said that there has been any failure on the part of the appellants to verify the declarations. It is further submitted when there is no dispute as to the material particulars in the shipping bills and thus the shipping bills were proper, the appell....
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....ion of goods by the customs officials in the presence of the exporter all at ICD, Tiruppur, no act or omission is attributable to the Appellants in respect of the concerned exports. It is further submitted that non-receipt of foreign remittances in respect of the exports made or its diversion to any other place vide allegedly illegal lading bills at another place is by any stretch of imagination not attributable to the Appellants as the same was not falling their scope of their duties. xi. That the Adjudicating Authority has imposed a penalty on the Appellants merely referring and interpreting certain judgments and that too only in respect of one M/s. Manasa Impex Services, Coimbatore., and not on account of any specific act or omi....
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.... main allegation against the Appellant was that he failed to get authorization of the exporter and he has failed in exercising due diligence in verifying the correctness of the information given with regard to the particulars in the Shipping Bills. The Adjudicating Authority found fault with the conduct of the CHA for exhibiting total disregard to the trust vested by the statute and such breach of trust is to be penalised. It was concluded that the CHA had failed to ascertain the correctness of the information provided by the exporter which was mandated on them by the statute, and thus he had aided as an active party in misdeclaring the destination of the consignments. 8. But the Appellant has replied that he had carried out the verifica....