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TMI Blog2010 (3) TMI 473X X X X Extracts X X X X X X X X Extracts X X X X ..... rangements made by them to conceal source of procurement. Benami transactions came to light. What was apparent was not proved to be real. Chain of evidence established nexus of the persons involved and goods exported, to serve their ill will. Reasonable belief of Investigation followed by search brought entire deliberate acts and omissions of appellants to the fold of law. Nexus of each other and their close proximity to the goods exported and fraudulent claim of DEPB made came to light by niceties of investigation. - Crystal clear factual findings of the learned Adjudicating Authority and echoing evidence on record do not demonstrate that Adjudications were made suspiciously or under surmise. All pleadings of the appellants were ill founded. X X X X Extracts X X X X X X X X Extracts X X X X ..... hich exported overvalued Microphones and Fuel Pump Diaphragms Appeal No. Appellant & Respondent Consequence of Adjudication C/427/06 Jagmohan Singh v. CC. New Delhi Rs. 20.00 lakhs C/433/06 Tejwant Singh v. CC New Delhi Rs. 1.00 crore C/230/06 Rajiv Kumar Sharma v. CC New Delhi Rs. 7,50,000/- C/656/06 CC New Delhi v. V. Valte No penalty imposed C/657/06 CC New Delhi v. G.S. Sohal No penalty imposed C/658/06 CC New Delhi v. B.K. Pabri No Penalty imposed 2. The Appellant Sri Tejwant Singh in Appeal case No. C-997/2005 was proprietor of M/s. Unicorn Industries and exporter of Microphone while he was controller of the benami export business carried out by M/s. Bonita Industries in Appeal Case No. C-138/2006 and in similar nature carried out by M/s. Chhabra Industries in Appeal Case No. 433/2006. Proprietor of M/s. Bonita Industries was declared to be Sri Rajeevan Thouvan Kandathil and proprietor of M/s. Chhabra Industries was declared to be Sri Narinder Pal Singh and the learned Adjudicating Officer recognised the proprietors as such in the three adjudications made separately as aforesaid. 3. The appellant Sri Jagmohan Singh in all the three appeals filed by him ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cals and Solvents Ltd), Delhi Rs. 8,05,352 Rs. 2.00 lakhs Rs. 8,05,352 M/s. Bharat Chemicals, Bhiwadi Rs. 6,07,429 Rs. 60,000 Rs. 6,07,429 M/s. Spun Chemicals, Sawai Modhopur Rs. 7,50,716 Rs. 75,000 Rs. 7,50,716 M/s. PCL Oil & Solvents Lt New Delhi Rs. 30,55,182 Rs. 3.00 lakhs Rs. 30,55,182 M/s. Binani Cements Ltd, New Delhi Rs. 69,88192 Rs. 7.00 lakhs Rs. 69,88192 M/s. Base Corporation Ltd, Bangalore Rs. 14,63,176 Rs. 1,45,000 Rs. 14,63,176 M/s. SED Computers and Technologies Ltd, New Delhi Rs. 25,07,858 Rs. 2,50,000 Rs. 25,07,858 M/s. Martin & Harris Laboratories Ltd Rs. 15,26,961 Rs. 1,50,000 Rs. 15,26,961 Loss of duty caused by use of fraudulent DEPB credits covered by order of Adjudication No. 6-9/HKM/CC/DRI/NCH/2005, dated : 31-10-2005 arising out of Show Cause Notice No. DRI. F No. 23/132/2002-DZU dated 30-12-2003 in the case M/s. Bonita Industries - Prop : Sri Rajeevan Thouvan Kandathil which exported overvalued Fuel Pump Diaphragms Name of the Importer Loss of Duty recoverable from Sri Rajeevan Thouvan Kandathil due to use of DEPB credits fraudulently obtained Fine Imposed on the Exporter Rajeevan Thouvan Kandathil Penalty imposed on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Sri Rajeevan Thouvan Kandathil proprietor of M/s. Bonita Industries was imposed fine of Rs. 20.00 lakhs when the goods exported by that concern became liable to confiscation. But there was no fine imposed in the case of exports made by M/s. Chhabra Industries. The persons involved in the racket and associated with the commitment of the offence were also penalized to the extent hereinbefore depicted in the Table aforesaid. 9. When all the transferee-importers pleaded during adjudication that they had imported goods on valid DEPB scrips and that they were bona fide buyers of such scrips and entire amount for purchase of such scrips (which were freely transferable under the Export Import Policy) was paid through bank channels; that there was no allegation directly or indirectly in the impugned notice that they were involved or had connived with the exporter in any manner; that since there was no allegation of suppression or misrepresentation against the noticees, the demand of customs duty from them under proviso to Section 28 of the Customs Act, 1962 invoking extended period of 5 years, was barred by limitation. Learned Adjudicating Authority agreed with the importers and exonerat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - cum-drawback 8. 2709 dated 28-11-2000 -do- 9600 56832 072- 4523- 0651 -do- -do- Total 44,75,709 11. Scrutiny of relevant documents further revealed that M/s. Unicorn Industries had exported the above-mentioned consignments under 49 shipping bills listed under col. 2 of the above table, for a total declared value of approximately US $ 44,75,709.2 (Rs. 28,70,61,112/-) involving DEPB credit of approximately Rs. 4,10,33,248/-, DFRC credit of approximately Rs. 35,26,560/- and drawback of approximately Rs. 5,21,618/-. Attempts were also made for availing drawback by fixation of brand rate on the shipping bills field under DEPB cum drawback scheme. The exports made under shipping bills meant for DEPB-cum-EPCG Scheme as mentioned above, had been shown towards discharge of export obligation against EPCG licence No. 0530131480 dated 19-12-2000. Out of the above mentioned exports, M/s. Unicorn Industries was issued 20 DEPB scrips against exports of 26 consignments covered under shipping bills Nos. 443 to 452, 24608 to 24612, 24840 and 1460 to 1469 as mentioned above. 20 out of these scrips were utilized by various importers for imports and payment of duty through debits in s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods exported by M/s. Unicorn Industries namely M/s. Omit Trade Links, Los Angels USA was owned by Banka Singh, uncle of Tejwant Singh. The enquiry reports from the US Customs revealed that Banka Singh had filed Entry summaries for clearance of the goods imported by M/s. Omit Trade Links, USA from M/s. Unicorn. Telephone numbers of Banka Singh and M/s. Omit Trade links, Los Angels were found to be the same in the seized telephone diary of Tejwant Singh. Transactions between both these firms were related person transactions. However, remittances against exports made under the above mentioned shipping bills, consigned to M/s. Omit Trade Links had been realized for the amount declared in the shipping bills, though it was evident from US Customs enquiry report that Banka Singh had taken delivery of the goods exported form India at a value which was grossly lower than the value declared in India. (5) Tejwant Singh succeeded in perpetrating fraud in active collusion and connivance of Jag Mohan Singh and Sanjay Kumar, who acted as the CHA and provided all the required assistance to Tejwant Singh. (6) Tejwant Singh was also assisted by Rajeev Kumar Sharma, Inspector and B.K. Pabri, Super ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... detected. Further the officers namely Superintendent Shri B. K. Pabri and Inspector Rajiv Kumar Sharma had processed export consignments/documents of the Unicorn even when they were not authorized to do so and Shri V. Valte did not stop them despite claims to the contrary V. Valte's conduct was seemed to be dubious and inexplicable. (11) Under above circumstances, DEPB scrips were obtained fraudulently suppressing the facts in respect of quality and value of the goods which were sold in the open market for utilization. The credit benefits availed by the different importers toward import duty became recoverable from them under the provisions of the Customs Act, 1962. Cause of action of order of Adjudication in the case of M/s. Bonita Industries - Proprietor : Sri Rajeevan Thouvan Kandathil 14. Investigating Officers came across certain export of cheap quality automotive parts, viz, fuel pump diaphragms made by one M/s. Bonita Industries - Proprietor Sri Rajeevan Thouvan Kandathil, G-22/1A Rajouri Garden, New Delhi through Air Cargo Complex, New Delhi, and large amounts of export incentives were availed by that concern under Duty Entitlement Pass Book Scheme (DEPB) and Drawback Sc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had been issued, availed and sold to 3 different importers as detailed in the Annexures C and D to the show cause notice, respectively. 18. Investigating Officer made enquiries with the Customs for processing files, market enquiry files and samples drawn from the consignments exported by the Customs. It was informed by the Customs Authorities that all efforts made to trace out the samples and files concerned with the case were in vain. Action was taken to inform all concerned field formations to prevent utilization of benefits against exports made by M/s. Bonita Industries. The originals of the shipping bills of M/s. Bonita Industries were also not provided by the Custom Authorities and only photocopies were provided. 19. Overseas enquiries conducted revealed that in the case of export of fuel pump diaphragms (shipping bill No. 6180 to 6199 dated 24-3-2001), there was gross over-invoicing as the value declared before Indian Customs was US$ 34.99 per piece and the value declared before US Customs was only US$ 0.59 per piece. The enquiries conducted with the US Customs revealed that delivery of all the goods, i.e. fuel pump diaphragms exported under shipping bills mentioned agains ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st Sl. No. 1 to 4 of the above table had been taken by one Banka Singh of Los Angles, California, USA. 23. Enquiry conducted with the Bank of Punjab Ltd., Rajouri Garden, New Delhi declared as the forex bank in the export documents, reelaed that the account of the above said firm i.e. the Chhabra was operated by Narinder Pal Singh, the proprietor of the firm. The Bank of Punjab Ltd., Rajori Garden and Punjab National Bank, Inland Container Depot, Tughlakabad/Container Freight Station, Patparganj/New Customs House, New Delhi (the bank designated by the department for the purpose of maintaining drawback account) were requested to stop all withdrawals by M/s. Chhabbra Industries. Director General of Foreign Trade, New Delhi was also informed about the fraudulent exports made by M/s. Chhabra Industries and was requested not to allow any benefits against their exports. DGFT had accordingly issued show cause notice to M/s. Chhabra on 22-4-2002 for cancellation of DEPB licences issued to them. 24. Search of residential premises of Sri Narinder Pal Singh, Proprietor M/s. Chabra Industries at J-11/18, Raouri Garden, New Delhi and office premises of M/s. Chabra Industries at G-22/1, Rajour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g decision of Apex Court in CC, Mumbai v. Prayag Exporters Pvt. Ltd - 2003 (155) E.L.T. 4 (S.C.) and decisions of Tribunal in the case of Rammapati Exports v. Commr. - 2006 (203) E.L.T. 107 and Ramayan Impex v. CC - 2005 (189) E.L.T. 446. It was also submitted that confiscation of goods exported by the appellant was not proper when those were not physically available. No redemption fine was imposable for the export. Export proceed having been realised, there was no case of over invoicing or misdeclaration made by the appellant. Therefore there was no question of denial of DEPB benefit to the appellant following the decision of Apex Court in the case of CC. v. Vishal Exports Overseas Ltd. - 2007 (209) E.L.T. 331 (S.C.) and as held by Tribunal in the case of Rekognation v. CC - 2009 (235) E.L.T. 310, Mercantile India v. CC, Chennai - 2007 (214) E.L.T. 540, Guru Nanak Exports v. CC - 2007 (215) E.L.T. 277, CC v. Crown International - 2006 (203) E.L.T. 120 and Indo Export House v. CCE - 2004 (168) E.L.T. 142. Customs Duty cannot be demanded from exporter against imports made by transferees of DEPB credit following decision of Hon'ble High Court of Bombay in the case of CC. v. Jupiter E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ysical torture was retracted on 16-10-2001, nothing implicates the appellant to charges. The Appellant being merely engaged in issuance of Airway Bills through M/s. Bedi & Co., had booked space for cargo through IATA had not abetted commitment of the offence alleged against Exporters. He was not a CHA and never acted as such. He was neither "G" card holder nor "H" card holder and had no access to customs area. He was never involved in examination, processing of the documents of export or arranged for inspection of goods. He had not involved himself in the exports. He being neighbour of Sri Tejwant Singh cannot be implicated to charges without any basis of connivance and conspiracy with exporters to cause loos to revenue by any unreasonable claim of DEPB Credits. He was no way connected with procurement of goods by exporters. None of the statements recorded has implicated the appellant. None of the ingredients of Section 114 being present, the appellant is not liable to penalty. Submissions on behalf of respondent Sri V. Valte 29. Learned counsel appearing on behalf of the respondent Sri V. Valte submitted that the said Respondent Officer had not made any conspiracy against Revenu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les given to him was directed to conduct market enquiry. However, he conducted enquiry in all fair ness. When cross examination of Sri Sumit Gupta and Shri A.J. Gupta appearing for the concerned parties who gave quotation negated the charge against the Respondent, he is not liable to penalty. The Respondent had not made any premeditated enquiry to cause abetment of the offence. There was no secret agreement came to record through show cause notice to penalise the Respondent. The Respondent being a Govt. servant is entitled to immunity having acted on good faith and that was granted in adjudication. Submissions on behalf of Revenue 32. It was submitted on behalf of Revenue that the masterminded Appellant Sri Tejwant Singh created all dummy concerns under different names made overvalued export of bogus goods which was not only proved from the oral evidence gathered from various persons but documentary evidence corroborated the statements recorded. His export through 3 (three) concerns proved to be bogus and overseas enquiry confirmed overvaluation resulting in defrauding Revenue and DEPB credits were fraudulently claimed as well the same transferred to different importers for undue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officers Sri Pabri and Sri Rajeev Kumar Sharma speaks their questionable conduct. All the Officers involved in the fraudulent export were instruments for undue claim of DEPB. The Respondent Officers being associated with each other allowed the export by their misconduct and ill intent. Their activities were prejudicial to the interest of Revenue. 38. Adjudications were done following due process of law. Natural justice was not denied to any body. Retraction of oral evidence tendered was baseless when the confession was corroborated by overwhelming direct and circumstantial evidence. The exporters were bound to make good of losses made to Revenue by them against imports made by transferee importers using fraudulent DEPB credits transferred to them. 39. When fraud was established that has unravelled all. Revenue's stand is fortified from the Apex Court judgment in the case of UOI v. Jain Shudh Vanaspati Ltd. - 1996 (86) E.L.T. 460 (S.C.). So also fraud nullifies every thing as held by Apex Court in CC v. Candid Enterprises - 2001 (130) E.L.T. 404 (S.C.) and in the case of Delhi Development Authority v. Skipper Construction Company (P) Ltd - AIR 1996 (SC) 2005. Cheating has been don ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o to apply the principles of natural justice. When he has discharged his duties in such manner his findings in the order of Adjudication can not be demolished. All the appellants were issued show cause notice following principles of natural justice and they were afforded reasonable opportunity of defence through hearing. Plea of no cross examination allowed and result of investigation not exposed are mere dilatory tactics to avoid consequence of law. Nexus of the parties, their intimate connection with each other promoted fraudulent export proving all probabilities of commitment of the offence by the appellants and Respondents causing evasion of duty and that was successfully proved by investigation. 42. Nothing demonstrates that the Authority below merely acted on imagination. The moment offending goods were found to be mis-declared and proved so by investigation on the reasonable belief that those were inferior in quality, but overvalued and procured from bogus sources; burden of proof that those were not inferior and not overvalued was squarely on the person who exported the same. Such burden was not discharged by the appellants who were intimately connected with each other and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ul claim of DEPB credits. 46. Search conducted on 6-8-2001 to the office premises of M/s. Unicorn Industries at E/35-A, Basement, Rajouri Garden, New Delhi, premises situated at at J-10/1, Rajouri Garden, as well as to the residential premises of Shri Jagmohan Singh situated at J-7/86, Second Floor, Rajouri Garden, New Delhi, revealed that he was helping Shri Tejwant Singh for clearance of his export consignments actively and was well connected with him by virtue of his acquaintance not ruled out by any evidence led. Further search made to the premises situated at C-197/A-1 and A-2, Mayapuri Industrial Estate, Phase II, New Delhi which was declared in the export documents as factory of M/s. Unicorn Industries and the premises situated at A-1/18, Mohan Garden, New Delhi which was declared to be office premises in the documents submitted, resulted with the finding that such premises was not in occupation of M/s. Unicorn Industries. But that premises was under occupation of some other individuals/entities. As a result of which declarations made in the export documents were found to be false and such result of enquiry remained uncontroverted by the Appellant Sri Tejwant Singh. 47. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in his oral evidence recorded on 10-8-2001 and 11-8-2001 stated that he was working as a salesman in Dubai in a firm M/s. Tanweer Trading. During his service in Dubai, he knew one Shri Banka Singh who used to send readymade garments to M/s. Tanweer Trading. Shri Banka Singh and his brother Shri Sachdeva Singh created a firm in the name of M/s. Bonita Industries giving the address at G-22/A, Rajouri Garden, New Delhi and signatures of Shri Rajeevan of Chennai was taken to obtain IEC number and to open current account in the Bank of Punjab, Rajouri garden, New Delhi. After that, Shri Rajeevan was sent back to Chennai to look after the business of garment of M/s. Cotton Club, M/s. Automotive Industries Associates, M/s. Unicorn Industries and M/s. Megha Industrial Group at Chennai. Only he knew was that he was Proprietor of M/s. Bonita Industries for name sake only. Such evidence against the Appellant Sri Tejwant Singh all along remained unassailed. Neither appeal of this concern nor the proprietor of that concern came up before Tribunal while hearing aforesaid 3 (three) batches of appeal. 50. From the statement recorded from Shri Sanjay Kumar who rendered the services as CHA in resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of small black colour Microphone like object were drawn by the Inspector Shri Rajeev Kumar Sharma for market enquiry. It was also known that the samples did not look like worth US $ 39.85. Shri Sanjay Kumar was informed by Shri Tejwant Singht that prior contact was made with Shri Rajeev Kumar Sharma, Inspector. A meeting of all these 3 (three) persons was also held at Parikarma Restaurant at Connaught Place New Delhi. Shri Sanjay Kumar and Shri Tejwant Singh had secret talks with settlement known to them for processing of export. Two letter heads of different firms were given to him by Shri Tejwant Singh. He stated that as far as he remembers there was a hand writing on the letter head reading as "To whomsoever it may concern "one person Shri Rajeev Kumar Sharma came to me with the samples of Microphones of CHEVAL T.M. I confirm the price of this microphone as Rs. 800/- to Rs. 900/-". The letter heads were kept by Shri Rajeev Kumar Sharma Inspector for use. It was also stated by Shri Sanjay Kumar that Shri Rajeev Kumar Sharma handed over him the copies of shipping bills endorsed with the stamp of "Final Assessment". Both the documents were handed over by him to Shri Tejwant Singh. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of proof of payment of CVD/CEX duty". "Provisionally assessed for M.E". This was done for all the 6 (six) firms. He further stated that Shri Tejwant Singh used to personally look after each and every aspect of export and personally making arrangements for customs clearance and arrangement of CHA. It was confirmed by Shri Jagmohan Singh that Shri Tejwant Singh had good relationship with Shri Rajiv Kumar Sharma, Inspector. 53. On subsequent occasion against the summons dated 21-1-2001, 14-1-2002, 13-6-2002 and 23-7-2002, Shri Jagmohan Singh did not appear to give evidence. For his failure to do so, a complaint was filed before the Court of learned AC.MM Patiala House Court, New Delhi. Non-bailable warrant was issued against him. Red alert was also issued by DRI. But he did not appear. 54. To examine the various aspects that came out from oral evidence recorded from different premises owners and CHA, summons were issued to Shri Tejwant Singh on various dates as exhibited in para 20 of order in original No. 05 dated 30th September, 2005. Evidence was recorded from Shri Tejwant Singh on three dates i.e. 22-8-2001, 5-11-2001 and 6-11-2001. Thereafter he did not appear before the Inves ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e received orders of 60,000 pieces for supply to that concern. All cordless phones were procured from Shri Sudhir and those were supplied or export. But Shri Tejwant Sigh did not give address of Shri Sudhir for examination. He confirmed that there was no machinery installed for manufacture of microphones in the premises in Mayapuri or at any other premises. All the aforesaid six firms had no manufacturing facility for manufacture of microphones. He stated that all the five concerns namely M/s. Chhabra Industries, M/s. Oberoi Industries, M/s. Bonita Industries, M/s. Oxford Fashions and M/s. Skyways Industries were all Proprietorship firms on paper. He was investing money in all these concerns. He did not rule out his involvement in the export of microphones through these proprietorship concerns. He also confirmed that he was taking help of Shri Jagmohan Singh his neighbour who issued Airway Bills for cargo clearance. 58. As regards Fuel Pump diaphragms exported by M/s. Bonita Industries and M/s. Chhabra Industries, Sri Tejwant Singh in his oral evidence recorded on 22-8-2001 stated that he had controlled these business concerns and those goods were manufactured in the basement of h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... examined by the Investigating officers. Frequent talk from his Mobile Telephone No. 98104-13747 to the Telephone No. 3232250 of Shri Anil Saxena disclosed information about value of the goods exported. Shri Anil Sexena confirmed that he was engaged in the manufacture of microphones at his residence only. He confirmed the call details procured by the investigation which showed that he was in conversation with Shri Tejwant Singh. The kit of Rs. 6 per piece in respect of 50,000 kits was subject matter of export. Shri Anil Sexena in his statement dated 16-12-2002 confirmed about the cost of manufacture of the kit which was Rs. 6/- per kit and Rs. 2.50 for Wire of Microphone and Rs. 2/- as labour charges. The supply price of the Microphone was Rs. 16.50 per piece. Around 60,000 to 70,000 pieces of Microphones at the rate of Rs. 16.50 were supplied by him to Shri Tejwant Singh. This piece of evidence remained uncontroverted and fully established the case against the master minded Sri Tejwant Singh. 62. Revenue being satisfied that Shri V. Valte, Deputy Commissioner, Shri B.P. Pabri, Superintendent and Shri Gurinder Singh Sohal Inspector of Customs were involved in the export racket, ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om any source about unauthorised clearance of export cargo by Shri B.K. Pabri, Suptd. and Shri Rajeev Kumar Sharma, Inspector. He had never given any instructions to these two officers to look after the provisional cases for examination, "let exports", market enquiry and finalization of those provisional assessments. 65. Shri Valte in his oral evidence dated 31-3-2003 stated that the high value of items of M/s. Unicorn Industries and its sister concerns were provisionally assessed as no previous exports of the same products were noticed and pending verification of the declared prices through market enquiries, exports were allowed. When the Appraising officer stated for provisional assessment on the basis of previous shipment done during the last week of December 2000 such assessment was done since the goods were exported to a non-sensitive destination. He had no occasion to doubt mis-declaration and in absence of any information of wrong doing by his officers as well as suspicious nature of the consignments. Action of his officers was not possible to be questioned in absence of any material. 66. In order to find out the status of the lost files, one Appraiser Shri A.K. Bhatnagar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e known to him (Shri Rajeev Kumar Sharma). He had signed the examination report and finalised the assessments. He confirmed that Shri Rajeev Kumar Sharma used to go for market enquiry and put up the enquiry report on file. 68. When role of Shri Rajeev Kumar Sharma, Inspector and Respondent in these three batches of appeal came out from the evidence recorded from various persons referred to in the orders of adjudication that officer was examined. He was Inspector at the material time and was working in the Export Section of Air Cargo Complex, New Delhi. He was examined on 12-10-2001. He stated that from July, 2000, to 23rd June 2001 he was posted in Air Cargo Complex and he was entrusted with the duty of processing shipping bills and conduct of market enquiry. He further stated that he had conducted market enquiry in relation to microphones/fuel pump diaphragms exported by M/s. Unicorn Industries, M/s. Chhabra Industries, M/s. Bonita Industries, M/s. Oberoi Industries and M/s. Skyways Industries, on the instructions of Supdt. Shri B.K. Pabri he was examining the consignments of these concerns. He stated that he knew Shri Tejwant Singh and his acquaintance with him began when he wen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onics and M/s. Chitra Electronics, investigating officers examined those two concerns. Shri Sumit Gupta, Manager of M/s. Eligin Electronics in his statement recorded on 8-10-2001 stated that the normal range of ordinary microphone sold by them was Rs. 75/- to Rs. 1,50,000/- per piece and cordless microphones were available with them for Rs. 5,000/- to Rs. 1,50,000/- per piece. They only give quotation for the goods they deal. He denied to have seen any OTL brand cordless microphones and stated that they never deal with those goods. He also stated that no quotation for OTL brand cordless microphone was issued by them. 71. Shri A.J. Gupta, Proprietor of M/s. Chitra Electronics stated that he was trading in all types of microphones and cordless microphones. The price of ordinary microphone ranged from Rs.10 per piece to Rs. 10,000/- per piece. He narrated nature of the goods of both categories of prices. He stated that technology for manufacturing kits of cordless microphones was not available in India and he had never traded in or seen any OTL-CDL-988 brand cordless microphone which was not available in the market for sale. He further stated that 6-7 months back two persons came to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... direct and circumstantial evidence. Close association of various persons and their active involvement made the export successful endangering Revenue. Abetment and connivance of the conduits facilitated export causing loss to Revenue. Oral evidence gathered remained unrebutted. Intimate and close nexus of each other became patent from the modus operandi adopted by the exporters with the conscious knowledge and deliberate intention to let export the overvalued goods. 76. Deceitful commitment surfaced with echoed evidence against the exporters and abettors. Ill designed racket came to light by Investigation. There was no fault found with investigation and process of investigation remained unchallenged except baseless pleas of violation of natural justice and flimsy plea of retraction of evidence when result of ill design brought the associates to the grave of offence committed under law and confessional were well corroborated. Acts of the appellants called for their trial in criminal court for which complaint was also filed by revenue. Nothing came out to the rescue of the appellants in absence of their bona fide. Series of acts of appellant and chain of evidence gathered by investi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prove its case by mathematical precision. Exposing entire modus operandi through allegations made in the show cause notice on the basis of evidence gathered by Revenue against the appellants was sufficient opportunity granted for rebuttal. Revenue discharged its onus of proof and burden of proof remained undischarged by appellants. They failed to lead their evidence to rule out their role in the offence committed and prove their case with clean hands. 80. Materials on record revealed that neither investigation nor process of investigation was challenged to be perverse or futile. Modus operandi of the group proved to be mala fide due to various dubious practices adopted and secret arrangements made by them to conceal source of procurement. Benami transactions came to light. What was apparent was not proved to be real. Chain of evidence established nexus of the persons involved and goods exported, to serve their ill will. Reasonable belief of Investigation followed by search brought entire deliberate acts and omissions of appellants to the fold of law. Nexus of each other and their close proximity to the goods exported and fraudulent claim of DEPB made came to light by niceties of i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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