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2013 (12) TMI 229 - AT - CustomsImport of goods without payment of duty - Goods were cleared by filing 26 bills of entry in the name of the appellants - Appellant claimed that he was not aware of any import of goods covered by said 26 bills of entry - Held that - there are imports by covered by 26 bills of entry and the whereabouts of these consignments are not known. The appellants claimed that they have not imported these consignments and therefore the question of their receiving in the factory does not arise - department is not in a position to disclose the basis for issue of show cause notice - Prima facie case in favour of assessee - Stay granted.
Issues: Alleged duty evasion through import of goods without payment, issuance of show cause notice, waiver of pre-deposit of dues
In the judgment, the appellant-company was accused of importing goods without paying duty amounting to Rs. 2,53,07,032. The goods included polyester yarn, polyester fabrics, woollen yarn, synthetic waste, among others, cleared through 26 bills of entry. The investigations began with a factory search. The appellant-director claimed ignorance of these imports, questioning the basis of the show cause notice issued by the Commissioner. The notice alleged serious fraud without substantial evidence, as no efforts were made to verify the imports or contact the relevant authorities. The appellant requested copies of bills of entry, which were not provided. The tribunal noted the lack of evidence supporting the duty demand and emphasized the need for substantive investigation to prove the alleged fraud. Regarding the imports covered by the 26 bills of entry, the whereabouts of the consignments were unknown, with the appellants denying any involvement in the imports. Despite the prolonged duration of the stay petitions, the department failed to disclose the basis for the show cause notice. Consequently, the tribunal decided to waive the pre-deposit of dues and stayed the recovery until the appeals were disposed of, granting the stay petitions unconditionally. The appeals were scheduled for final disposal on a specified date.
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