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Issues:
Stay applications seeking waiver of pre-deposit of penalties imposed for draw back fraud in relation to exports of readymade garments. Analysis: 1. Penalties Imposed: Penalties were imposed on individuals involved in a huge draw back fraud related to exports of readymade garments under Order-in-Original No. 13/KKJ/ADJN/2006-07. The penalties ranged from Rs. 5 lakhs to Rs. 20 lakhs for different individuals. 2. Fraudulent Activities: The case involved fraudulent activities where readymade garments were exported under false pretenses. Investigations revealed discrepancies in the declared value of goods, non-existent manufacturing facilities, and discrepancies in export destinations and prices. 3. Involvement of Individuals: Specific individuals were found to be behind the fraud, despite other persons being listed as proprietors of the exporting firms. Evidence included recovered goods, documents, bank papers, and statements confirming their involvement in the fraud. 4. Role of Officers: Officers involved in certifying the export consignments were found to have facilitated the fraud by falsely verifying the stuffing of export goods in containers. Their actions were deemed crucial in enabling the fraudulent activities. 5. Legal Submissions: The appellants contended that they were mere employees and not the actual owners or exporters, shifting blame to the officers. They also raised legal arguments regarding the applicability of amended provisions of Section 113(i) post-export. 6. Judicial Decision: The Tribunal found substantial evidence supporting the fraud, including non-receipt of payments, discrepancies in export values, and involvement of the appellants and officers. The Tribunal ordered 50% pre-deposit of penalties for all applicants except one, citing undue hardship only in the case of the Dy. Commissioner. 7. Conclusion: The Tribunal dismissed the stay applications, emphasizing the seriousness of the fraud and the lack of justification for complete waiver of pre-deposit. The judgment highlighted the deliberate nature of the fraud and the active roles played by the individuals and officers involved.
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