2005 (1) TMI 118 - HC - Customs

Summary

Issues:
1. Withdrawal of SRP facility by Central Excise.
2. Duty liability and allegations of forged export proof.
3. Petitioner's request for action against Merchant-Exporter.
4. Allegations of forging F. No. and signature.
5. Violation of principles of natural justice in issuing direction.

Detailed Analysis:
1. The petitioner was directed by the Central Excise to cease further removal of goods under Self Removal Procedure (SRP) and the SRP facility was withdrawn. Subsequently, the petitioner was asked to pay duty liability within 10 days, with a warning of enforcement of the B-17 Bond or initiation of an offence case due to alleged forged export proofs. The petitioner approached the High Court seeking relief, which was granted temporarily by a Division Bench. The interim relief remained in effect until the judgment.

2. The Deputy Commissioner found discrepancies in export claims made by the petitioner through their Merchant-Exporter, alleging that no actual exports took place and the proof submitted was forged. The respondents contended that the petitioner had forged official documents, which the petitioner did not rebut. The Court held that the Authority was justified in demanding duty payment based on the terms of the B-17 Bond, dismissing claims of a violation of natural justice principles.

3. The petitioner also requested the authorities to take action against their Merchant-Exporter for the alleged fraudulent exports. Despite being served, the Merchant-Exporter did not participate in the proceedings, leaving the allegations unanswered.

4. The Court noted that the petitioner did not contest the claim that they had forged official documents, specifically F. No. and signature of the Commissioner of Customs, Nhava Sheva. The lack of a rejoinder from the petitioner further weakened their position in the case.

5. The judgment concluded that the Authority's actions were not in violation of natural justice principles, as the petitioner had already provided a B-17 Bond allowing enforcement in case of forged export proofs. The petition was dismissed, costs were awarded against the petitioner, and the interim relief granted earlier was vacated.