2014 (8) TMI 357 - AT - Customs

Mis-declaration of export - fraudulent claim of DEPB benefit - Forgery of signatures - Held that - adjudication order reveals that one Shri Vijay Madaan who was representative of CHA appellant had forged signatures and also substituted antedated documents to defraud Revenue. It also appears that some of the customs officers were involved in the fraud. Shri M P Singh, Inspector brought out above fact. There is no evidence to show that the appellant was innocent and without his knowledge the documents were filed. He had not taken any legal action against Vijay Madaan. Customs area is a sensitive place where the protection of Revenue as well as security of the country is involved. Therefore we send back the matter to learned Adjudicating authority to make a full inquiry as to ascertain who had forged the signatures and who were involved in antedating the documents and issuing summons to Qimiti Lal Sharma and also Vijay Madaan shall discover the truth behind the scene - matter remanded back.

Summary

Issues: Allegation of mis-declaration of export, involvement of CHA in fraudulent claim, failure to reply to show cause notice, forgery of signatures, involvement of customs officers, need for full inquiry.

The primary issue in this case revolves around the allegation made by the Revenue that the Customs House Agent (CHA) was involved in the mis-declaration of export to facilitate a fraudulent claim of Duty Entitlement Passbook (DEPB) benefit. The Revenue contended that the CHA should be penalized for this involvement. On the other hand, the appellant argued that they had no knowledge of the misdeeds, claiming that someone else forged their signature and filed the relevant documents without their consent.

Another issue highlighted by the Learned DR was the appellant's failure to respond to the show cause notice or appear for the hearing, which the Revenue viewed as an attempt to evade liability and shift blame onto another individual, Vijay Madaan, who was alleged to have forged signatures and manipulated documents to deceive the Revenue. The involvement of customs officers in the fraudulent activities was also brought to light by Inspector Shri M P Singh, further complicating the matter.

The adjudication order pointed out the seriousness of the situation, emphasizing the need for a thorough investigation to determine the true culprits behind the forgery of signatures and the manipulation of documents. The court directed the matter to be sent back to the adjudicating authority for a comprehensive inquiry, including summoning both Qimiti Lal Sharma and Vijay Madaan to uncover the truth. The court stressed the importance of protecting Revenue and ensuring the security of the country in customs-related matters.

In light of the complexities and uncertainties surrounding the case, the court disposed of the appeal with the aforementioned directions, emphasizing the importance of a detailed inquiry to ascertain the facts before passing any final orders. The appellant was directed to appear before the adjudicating authority for further proceedings and cooperation in the investigation to reach a just conclusion.