2019 (4) TMI 494 - HC - Customs

Imposition of penalty u/s 112 and 114AA of FA - Forgery - import licences were forged - the entire effort of the revenue was to establish the appellants guilt or role based upon adverse statement recorded by few ex-employees - Held that - The premises of M/s. Alliance Strategies Limited yielded - during search - rubber stamps, which were apparently used to create documents. These forged documents found their way to other vendors, who purchased the equipments and exported them. The version of the employees was that forgery did take place in whatever way, was done at the behest of the superior officers. If any grievance was of the appellants with respect to their role, it was open to them to disclose on the basis of the material either existing or sourced in the course of proceedings from the DoT that the documents were not forged. As far as the issue as to whether the forgeries were carried on by the appellants or at their behest or they had no role would concern, that is the subject matter of criminal proceedings; to which this Court would not like to comment on them, as it may cause prejudice to the appellants. This Court is of the opinion that no question of law arises in the present petition - petition dismissed.

Summary

Issues:
Appeal under Section 130 of the Customs Act challenging CESTAT's final order dated 18-8-2017 regarding forged WPC Import Licences and penalties imposed under Sections 112 and 114AA of the Customs Act.

Analysis:
1. Search and Seizure Proceedings:
- Customs Authorities conducted search at M/s. Alliance Strategies Limited, finding incriminating material like official rubber seals and forged WPC Import Licences.
- DoT confirmed that the licenses were not issued by them, leading to investigation under the Customs Act.
- Statements of individuals implicated M/s. Alliance Strategies Limited and its Directors, leading to penalties imposed by the Commissioner.

2. Appellants' Contention:
- Appellants denied involvement in forgery and argued that their role was not proven.
- Allegations of denial of proper opportunity and non-compliance with furnishing documents were raised.
- Lack of Forensic Science Laboratory Report to establish the use of forged licenses by the appellants was highlighted.

3. Court's Consideration:
- Court noted DoT's confirmation that the WPC Licences were not issued by them.
- Rubber stamps found at M/s. Alliance Strategies Limited were used to create forged documents.
- Employees claimed forgery was done under superior officers' instructions.
- Appellants' explanation as mere facilitators was deemed suspect, with the issue of their involvement left for criminal proceedings.

4. Judgment:
- Court found no legal question arising from the clear findings and evidence.
- Dismissed the appeal, upholding CESTAT's decision based on the available evidence and lack of legal grounds for intervention.

This detailed analysis covers the search and seizure proceedings, appellants' contentions, court's considerations, and the final judgment, providing a comprehensive overview of the legal issues and the High Court's decision in the case.