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TMI Blog2017 (11) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... enal provisions are enacted to suppress the evils of defrauding Revenue which is an anti-social activity adversely affecting the public revenue, earning of foreign exchange, economic and financial stability of the economy. Therefore such provisions are construed in a manner to suppress the mischief and to promote the object of the statute, preventing evasion, foiling artful circumvention thereof. Thus construed, the term fraud within the meaning of these penal provisions is wide enough to take into its fold any one or series of acts committed. Such act or acts when demonstrate to be reasonably proximate to the diversion of duty free imported goods fraudulently they should face adverse consequence of law. In view of the cogent and credible evidence came to record proving malafides of appellants as discussed above, result of investigation brought out their hand in glove to cause subterfuge to Revenue as well as adjudication findings remained unchallenged by them leading any evidence to the contrary, appellants fails to succeed in their appeal having caused detriment to the interest of public revenue. They could not rule out their ill will. Pre-ponderance of probability came to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of 55 MT on three different occasions during the period January to October 2000 (Ref: page 10 of the OIO). 2.4 Sri Pinkesh Jain also admitted that raw materials and manufacturing records were destroyed to escape from scrutiny under law. On 14.02.2001 and 19.02.2001 he revealed the quantum of goods involved in different Bills of Entry which were diverted to market identifying that from the seized documents as follows: Sr no Bill of Entry and Date Quantity in Kgs Assessable value (RS) Duty (Rs) 1 421554 dt. 5.10.2000 22464 13,40,813 9,49,145 2 421098 dt. 3.10.2000 22464 14,48,079 10,25,080 3 001844 dt. 12.6.2000 19968 11,36,829 8,04,747 4 001860 dt. 12.6.2000 19968 11,36,829 8,04,747 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. 3114 dt. 17.01.2000 MH-04H 3990 AnsarPathan Jai Transport Agency, Bhiwandi 2. 3992 dt. 2.2.2000 MH-04H 5680 Jaisingh Rale Jai Transport Agency, Bhiwandi MH-04P 8104 Details not known 3. 373 dt. 2.2.2000 MH-04H 5680 Jaisingh Rale Jai Transport Agency, Bhiwandi MH-04H 6459 Popat Gaikwad 4. 6033 dt. 28.2.2000 MH-04H 5680 Jaisingh Rale Jai Transport Agency, Bhiwandi MH-04P 4277 AbasahebJadhav 5. 3038 dt. 9.3.2000 MCY-2877 Uttam V Pawade Factory of M/s Umaji Overseas MWF-4289 Details not known MMS-110 Sandeep Khilare 6. 1844 dt. 12.6.2000 MH-04 3271 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imported goods in the above said private godowns and later sold them in the local market on commission basis. Other yarn brokers Suresh Sawarmal Chotiye, Sahilesh Shantilal Shah, Puran Bansilal Phophalia, Kailash Omprakash Agarwal also revealed that they had locally purchased the imported yarn from Mangilal Jain. 2.14 Ranmal Rajmal Jain , another yarn broker also admitted to have sold imported yarns of appellant firm, under supervision of Pinkesh Jain to various loom owners in Bhiwandi, Bhilwara and Benares on commission basis. 2.15 Cash sale of imported goods was made in the local market and the sale proceeds therefrom were deposited in the bank accounts of M/s Jay Vijay Textile and M/s Ambika Trading Co., which were owned by Pinkesh Jain as proprietor thereof. 2.16 Pinkesh Jain was arrested on 23.11.2000 for commitment of breach of terms of export and evading Customs duty. His detention under COFEPOSA was initiated and the Detaining Authority, Mantralaya, Government of Maharashtra issued detention order dated 10.8.2001. However, Pinkesh Jain absconded during the relevant period to avoid service of detention notice. Subsequently, the detention order was re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inion that the questionable modus operandi followed by the appellants proved their oblique motive and unduly enriched at the cost of Revenue. Their cross examination plea was a dilatory tactics. Accordingly he completed adjudication against them raising following demands: Appeals pending before the Tribunal Sr No Appeal no. Name of the party Offence Duty(in Rs) Penalty(in Rs) 1 C/561/08 M/s Umaji Overseas 28, 114A 75,37,420 75,37,420 2 C/562/08 Pinkesh K. Jain 112(a) (b) 10,00,000 3 C/563/08 Rakesh K. Jain 112(a) (b) 10,00,000 4 C/596/08 Mangilal Jain 112 (b) 3,00,000 8. Apart from the above, penalty of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tage obtained by the deceiver will almost always cause loss or detriment to the deceived. Similarly a fraudis an act of deliberate deception with the design of securing something by taking unfair advantage of another. It is a deception in order to gain by anothers loss. It is a cheating intended to get an advantage. (See : S.P. Changalvaraya Naidu v. Jagannath [1994 (1) SCC 1 : AIR 1994 S.C. 853]. It is said to be made when it appears that a false representation has been made (i) knowingly, or (ii) without belief in its truth, or (iii) recklessly and carelessly whether it be true or false [Ref : Roshan Deen v. Preeti Lal [(2002) 1 SCC 100], Ram Preeti Yadav v. U.P. Board of High School and Intermediate Education [ (2003) 8 SCC 311], Ram Chandra Singhs case (supra) and Ashok Leyland Ltd. v. State of T.N. and Another [(2004) 3 SCC 1]. (C) Suppression of a material fact would also amount to a fraud on the Court [( see Gowrishankar v. Joshi Amha Shankar Family Trust, (1996) 3 SCC 310 and S.P. Chengalvaraya Naidus case (AIR 1994 S.C. 853)]. No judgment of a Court can be allowed to stand if it has been obtained by fraud. Fraud unravels everything and fraud vitiates all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 collusion vitiate even the most solemn proceedings in any civilized system of jurisprudence. It is a concept descriptive of human conduct either by letter or words, which includes the other person or authority to take a definite determinative stand as a response to the conduct of the former either by words or letter. 12. Penal provisions are enacted to suppress the evils of defrauding Revenue which is an anti-social activity adversely affecting the public revenue, earning of foreign exchange, economic and financial stability of the economy. Therefore such provisions are construed in a manner to suppress the mischief and to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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