9911796707
TMI Blog2011 (6) TMI 639X X X X Extracts X X X X X X X X Extracts X X X X ..... not maintainable - liability of IDBI Bank arises basically from the negligence of Shri Ravinder – Held that:- United Western Bank which was taken over by IDBI did not handle the goods. It is submitted that the banking transactions relating to the export goods were carried out in the normal course of business without any mens rea. It is also argued that the liability of IDBI Bank is further remote because the offence if any was committed by United Western Bank which they took over. It is argued that a company taking over another company cannot be held liable for the offence committed by the company taken over, arguments raised on behalf of IDBI are valid arguments. Further considering that we are setting aside penalty on Shri Ravinder, penal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sales proceeds were not realized but realization shown using fake currency declaration forms (CDF) of passengers arriving in India from CIS countries and making deposit of foreign currencies into the account of the firms using such fake CDFs and claiming such payment to be realization of export proceeds and thus export benefits were claimed fraudulently. A show cause notice for recovering the drawback already sanctioned to the tune of Rs. 1.88 crores from the exporters and proposing confiscation of goods under Section 113 and proposing penalty under Section 114 of the Customs Act was issued and was adjudicated. The adjudication order imposed a penalty of Rs. 5.00 lakhs on IDBI Bank Ltd. and Rs. 5.00 lakhs on Shri Ravinder Rajurkar under Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which itself was enough to raise suspicion about the genuineness of these CDFs. Bank admitted in clear terms the gross irregularities on their part and deviation from the normal course while accepting the foreign currency and scrutinizing the documents being submitted by these exporters. The bank thus facilitated these exporters in accounting the foreign currency so deposited by them in their bank as export proceeds whereas the fact is that foreign currency so deposited has no nexus with the goods exported and the same appears to have been illegally procured by these exporters from the grey market. Extract from order-in-original :- Shri Ravindeer Rajurkar, Officer Scale-II, United Western Bank Ltd. now known as M/s. IDBI Bank Ltd. ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r as their evidentiary value is concerned. Thus the bank in general and Shri Ravinder Rajurkar in particular have failed to perform their duty and thus facilitated the exporters in their vicious intentions resulting in loss to the government exchequer. They were careless to the extent to allow the facilities of their bank to be used by the other noticees for extending their illegal activities and giving them the false cover of legal proceeds. Shri Ravinder Rajurkar and M/s. United Western Bank Ltd. have thus rendered themselves liable for penalty under Section 114. 4. The argument of the Appellant is that they had no personal knowledge about the fraud committed on revenue. His omissions can at best be classified as carelessness as found ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervisors also is alleged in the show cause notice. The basic argument raised on behalf of IDBI is that for imposition of penalty under Section 114 of Customs Act, the person concerned should have handled the goods. It is submitted on behalf of the appellant that the United Western Bank which was taken over by IDBI did not handle the goods. It is submitted that the banking transactions relating to the export goods were carried out in the normal course of business without any mens rea. It is also argued that the liability of IDBI Bank is further remote because the offence if any was committed by United Western Bank which they took over. It is argued that a company taking over another company cannot be held liable for the offence committed by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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