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TMI Blog2017 (10) TMI 1204X X X X Extracts X X X X X X X X Extracts X X X X ..... be reasonably proximate to the clearance of imports duty free on the basis of the DEPB scrips fraudulently obtained against false documents filed before DGFT, a trader of such scrips has to face adverse consequence of law - appellant fails to succeed in his appeal having acted malafide causing detriment to the interest of public revenue. Ill will of appellants came to record. Pre-ponderance of probability is in favour of Revenue and lends credence to its case. Appeal dismissed - decided against appellant. - C/86085/15 - A/90278/17/SMB - Dated:- 27-10-2017 - Dr. D. N. Panda, Judicial Member None for appellant Shri S. J. Sahoo, Asst. Commr (AR) for respondent ORDER Per: D.N. Panda Enquiry into the duty free im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Authorities below on the basis of probe result demonstrating his fraud and forgery committed, as discussed above. 3. None present for the appellant. 4. Revenue submits that fraud committed by appellant in the manner stated in the orders of the Authority below proved his contumacious conduct and deliberate intention to cause evasion committing fraud against Revenue for which his appeal should be dismissed in absence of any evidence to the contrary led by appellant. There is no rebuttal by the appellant against the probe result aforesaid without any good reason advanced by the appellant or any cogent or credible evidence adduced to prove his innocence. 5. Heard Revenue and perused the record. The investigation result and findings of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in contravention of the law or abetting to achieve such ill object, such act against public Revenue calls for penal consequence to curb such mischief. 8. Fraud in the eyes of law is viewed as under: (A) If a party makes representations which he knows to be false and injury ensues therefrom although the motive from which the representations proceeded may not have been bad is considered to be fraud in the eyes of law. It is also well settled that misrepresentation itself amounts to fraud when that results in deceiving and leading a man into damage by wilfully or recklessly causing him to believe on falsehood. Of course, innocent misrepresentation may give reason to claim relief against fraud. In the case of Commissioner of Customs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nravels everything and fraud vitiates all transactions known to the law of however high a degree of solemnity. When fraud is established that unravels all. [Ref : UOI v. Jain Shudh Vanaspati Ltd. - 1996 (86) E.L.T . 460 (S.C.) and in Delhi Development Authority v. Skipper Construction Company (P) Ltd. - AIR 1996 SC 2005] . Any undue gain made at the cost of Revenue is to be restored back to the treasury since fraud committed against Revenue voids all judicial acts, ecclesiastical or temporal and DEPB scrips obtained playing fraud against the public authorities are non est. So also no Court in this country can allow any benefit of fraud to be enjoyed by anybody as is held by Apex Court in the case of Chengalvaraya Naidu reported in (1994) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... E.L.T. 404 (S.C.) . Non est instruments at all times are void and void instrument in the eyes of law are no instruments. Unlawful gain is thus debarred. (G) Fraud and justice do not dwell together for which penal provisions are enacted to eradicate evils of defrauding Revenue which is anti-social activity adversely affecting public revenue. Such provisions are construed in the manner which curbs the mischief, promote their object, prevent their subtle evasion and foil their artful circumvention. Thus construed, the term fraud within the meaning of these penal provisions is wide enough to take in its fold any one or series of unlawful acts committed or omissions made. An act of fraud on Revenue is always viewed seriously. Fraud and c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase. 11. Enactments like Customs Act, 1962 and Customs Tariff Act, 1975, are not merely taxing statutes but are also potent instruments in the hands of the Government to safeguard interest of the economy. One of its measures is to prevent deceptive practices of undue claim of fiscal incentives. Evidence Act not being applicable to quasi-judicial proceeding, preponderance of probability comes to rescue of Revenue and Revenue is not required to prove its case by mathematical precision. Exposure of modus operandi of appellant on the basis of evidence gathered by Revenue against the appellant, making allegations in the show cause notice, Revenue discharged its onus of proof and burden of proof was on the appellant which remained undischarged ..... X X X X Extracts X X X X X X X X Extracts X X X X
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