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TMI Blog2004 (9) TMI 600X X X X Extracts X X X X X X X X Extracts X X X X ..... which the quantity permitted to be imported were manipulated/changed, and that some of the items imported were in excess of the eligible/permitted quantity in the licences resulting in wrong availment of the benefits of the DEEC Scheme, the officers of the DRI searched the premises of some of the main licence brokers/traders and some of the main importers of leather chemicals under DEEC Scheme. As the intelligence and subsequent investigation revealed that the copies of fabricated licences were destroyed by the licence brokers concerned, the officers of DRI obtained copies of the related documents from various sources viz. JDGFT authorities, Customs, Exporters (original licence holders) and also cross-verified with the details available in the DEEC registers maintained in the Custom House. The investigation revealed that manipulations have taken place in some of the advance licences. The modus operandi as revealed by the investigation is listed in the impugned SCN. To quote a few : (i) Against the permitted quantities, the unit of measurement, i.e. grams in the original licence, was manipulated to read as kgs . For eg. In one of the licences, the permitted quantity of 202164 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to buy the licences brought by the brokers of various types, including quantity and value based advance licences; that whenever an importer required a licence for import, they used to specify the details including description of the products, value etc. and that, he used to inform the CHA of the details of the licences available for making entries and that during the assessment and other customs formalities either he himself or his staff, under his instructions, took the licences and produced to customs for verification, but never gave the licence and the documents to either the importer or the CHA. He has added that after completion of the above formalities, he would raise the Debit Note on the importer and no transfer note was given to the importer for transfer of the licence. He had admitted that the items like pigments, binders, syntan, fat liquor etc. were more in demand and hence he manipulated the licence by making double entries in respect of these items. He had given an illustration of the manipulation carried out by him in the licence. In licence No. 610000297/13-1-2000 seized from his house, the permitted quantity of PU binder was 403 kgs. and using the same 300 kgs. was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from interest, penalty and prosecution for the importer. 7. With regard to the licence broker, Shri Ishwar Chand B. Tater, Shri Murugappan, Advocate submitted that his client was forced to resort the manipulations due to the market conditions and severe competition prevalent during the relevant period to remain in the market. Since, the have accepted the charges made and fully cooperated with the Commission, he requested for immunity from penalty under Sec. 127 H of the Customs Act, 1962. 8. None represented the Respondent Commissioner. 9. On examination of the case, including submissions made in the applications filed by M/s. V.A.S. Noorulah Co. and Shri Ishwarchand B. Tater, one of the licence broker who had fabricated and traded in the said licence and the submissions made during the hearings by the applicants Advocate and the Revenue, as also the relevant records, it is noticed that the first applicant, namely M/s. V.A.S. Noorulah Co. had imported goods in quantities in excess of the permissible limit under the licences, for which (the excess) exemption under Notification No. 31/97-Customs dated 1-4-1997 is not otherwise available. However, the said import appears t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and philosophy of the settlement scheme and its provisions. 12. In this context, the Bench observed that a Special Bench of the Customs and Central Excise Settlement Commission constituted in the case of M/s. Crest Communications, had extracted in its order F.No. V/39-2-Cus./SC/MZ/ 2001/2154 dated 26-8-2000 the following recommendations of Wanchoo Committee: This, however, does not mean that the door for compromise with an errant tax payer should forever remain closed. In the administration of fiscal laws, whose primary objective is to raise revenue, there has to be room for compromise and settlement. A rigid attitude would not only inhibit a one time tax evader or un-intending defaulter from making a clean breast of his affairs, but would also unnecessarily strain the investigational resources of the department in cases of doubtful benefit to revenue, while needlessly proliferating litigation and holding up collections. We would, therefore, suggest that there should be a provision in the law for a settlement with the tax payers at any stage of the proceedings. In the United Kingdom, the confession method has been invoked since 1923. In the US also there is a provision for a c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ey requested for immunity from prosecution under allied other Acts without being specific. 15. Accordingly, the case is settled in terms of Section 127C(7) of the Customs Act, 1962 on the following terms and conditions : (i) The duty liability is settled at Rs. 6,14,808/- as mentioned in the SCN. The amount of Rs. 6,14,808/- has already been paid and is adjusted against the duty liability now settled. Hence no further amount is payable. (ii) The applicant shall pay simple interest @ 10% p.a. from the date of the aforesaid duty which ought to have been paid till they were actually paid. The revenue shall calculate interest and communicate to the applicant within 15 days of the receipt of this order. The applicant shall pay the interest amount within 3 weeks from the date of communication by the Revenue and submit report/compliance to the respondents and to this Bench. Immunity is granted from interest in excess of 10% p.a. in terms of Section 28AB of the Customs Act, 1962. (iii) The applicant, namely, M/s. V.A.S. Noorulah Co. is also granted immunity from penalty, prosecution and confiscation, and fine in lieu of the said confiscation, under the Customs Act, 1962 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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