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TMI Blog2019 (5) TMI 611X X X X Extracts X X X X X X X X Extracts X X X X ..... the matters arise out of the same order which is of 2009 and nearly 10 years have elapsed in interest of justice all the appeals have been taken up for consideration and disposal. From the findings of the Commissioner as recorded above the case of export fraud has been well made out against all the other appellants except the two CHAs. Sufficient evidence has been brought on record to uphold the charges made against them and the penalties proposed on them along with confiscation of goods and demand of duties are justified. In our opinion in such cases of economic offences where such fraudster are playing with the economic fabric of the country strict actions as provided under the law is warranted - In case of the CHA namely M/s Fast Forwar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... along with interest on M/s Sai Shradha Export Pvt Ltd in terms of Section 28(2) and Section 28AB of CA'62 (5) There shall be a penalty of ₹ 1,32,28,562/- on M/s Sai Shradha Export Pvt Ltd under Section 114Aof the Customs Act, 1962. However if they pay the entire amount of demand now confirmed and the interest leviable thereon within 30 days from the receipt of this order, the penalty amount shall stand reduced to s 33,07,140/- (being 25% of the above penalty amount) in terms of first and second proviso to Section 114A of Customs Act, 1962, provided that the reduced amount of penalty is also paid within the said time limit. The amount of ₹ 5,00,000/- paid by SSEPL during investigations may be adjusted towards duty liability. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... khs Only) each on M/s Fast Forward [CHA No 11/879] and M/s Santon Shipping Services [CHA No 11/1231] u/s 112(b) of CA'62. (10) The proposal to demand duty and impose penalty against the 23 firms who had utilized the 47 fraudulently obtained DEPB licenses in question is dropped." 2.1 Pursuant to the intelligence regarding malpractices in export of pharmaceutical drugs by M/s Sai Shradha Exim Pvt Ltd (SSEPL), merchant exporter, their premises were searched and various incriminating documents like copies of 66 ARE-1 purportedly issued by manufacturers and sales invoices of three dealers/ indenters were recovered. 14 ARE-1's issued by M/s Surya Pharmaceuticals Ltd (SPL) for clearance of export goods from its factory for export under DEEC S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had declared the goods on these Shipping Bills as "Ranitidine HCL-USP or Roxythromicin B P or Erythromycin USP" purportedly procured from three Central Excise registered units viz M/s TASC Pharmaceutical Ltd Pune, M/s Loyal Chemicals Pvt Ltd Bhavnagar and M/s Halcyon Labs Pvt Ltd Ahmedabad. All the three units declined having supplied any goods to SSEPL or to any of three indenters. Investigations also revealed that three indenters were also nonexistent and fake. All the payments made against such purchase were made in the name of some lowly paid employees of PIC, and subsequently withdrawn in cash by Mr Charles Patrick, Managing Partner of PIC through its employee Shri Suresh Pande. Enquiries made with Singapore Customs revealed that the g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and with the help of cheque discounting from M/s Rajguru Impex (India) Pvt Ltd. 2.7 M/s Fast Forward and M/s Santon Shipping Services, Both CHA had presented fabricated ARE-1's/ export documents to the custom Authorities along with goods misdeclared as bulk drugs. They had allowed their licenses to be used for such mis declared fraudulent exports and have abetted illegal acts committed by M/s SSEPL. 2.8 The exports of misdeclared goods was made through Nhava Sheva and imports were made through Kandla, ICD Tughlakabad and Nhava Sheva. Therefore a SCN answerable to different jurisdictional Commissioners was issued by the investigating agency. CBEC vide Notification No 12/2009-Cus (NT) dated 20.01.2009 appointed Commissioner of Customs ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... License. Thus she submitted that penalty under 112 (b) of the Custom Act, 1962 cannot be justified. 3.3 Arguing for the revenue learned Authorized Representative took us through various paragraphs of order whereby the case of revenue has been expounded. He submitted that this is a clear case of export fraud wherein the cheap stone powder was exported by declaring the same as Pharmaceutical Products. Show Cause Notice and adjudication Order brings out the entire chain and trail of events in a lucid manner, which lead to such export fraud. In this case even the beneficiaries of the fraud have been identified and action initiated against them. Economic fraud of such nature should be viewed seriously and maximum possible sentence/ punishment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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